Republicans rolled out a plan to cut income taxes by $250 million, implement a $45 million personal property tax cut for businesses and direct $100 million toward paying down debt.
Under the plan, the individual income tax cut, through a change in the standard deduction, would mean the average filer would see a $106 reduction, according to the nonpartisan Legislative Fiscal Bureau. An anticipated 64.1% of taxpayers would see a reduction, should it be enacted, next spring.
The cut would be targeted to those with incomes below $144,669 for married joint filers and $120,360 for single and head-of-household filers. LFB noted the measure would cost around $248 million in the next fiscal year, and $224 million annually going forward.
Meanwhile, the personal property tax exemption would apply to machinery, tools and patterns from businesses, a reduction of $44.7 million a year.
The legislation would leave a balance of $956 million in the state’s rainy day fund.