Here’s a summary of the new taxes proposed by Senate Democrats:
Individual income tax increased to 4.95% (currently 3.25%), a 53% increase.
Corporate income tax to 7% (currently 5.25%), a 33% increase.
Increases the Earned Income Tax Credit to 15% (currently 10%), a 50% increase.
Amends the Sales Tax Acts to impose a tax on “taxable services” beginning January 1, 2018, at a rate of 6.25%, plus all applicable local sales taxes:
- providing space for storage (exempts grain)
- laundry, dry cleaning, cloth pressing, dyeing, or linen service (except coin-operated, self-service machines)
- private detective, private alarm, and private security services
- structural pest control services
- personal care services (tattooing, body piercing)
Creates a new Act to impose a tax on providing direct-to-home satellite service, direct broadcast satellite service, or digital audio-visual works to a subscriber at a rate of 5%.
Creates a new Act to impose a tax on the subscribers of entertainment at a rate of 1%, for the privilege to witness, view, or otherwise enjoy the entertainment.