Good Tax Bills That Went Nowhere
Each year there are Legislators who have good intentions to try to help the taxpayers get relief from unfair taxing procedures or exorbitant taxes.
The government agencies have a magnificent defense against these types of bills. It is called a “Fiscal Note” and it is attached to each bill for all legislators to read . A fiscal note is an estimate of what it will cost the government if the bill passes.
Most of the estimates are way over the top and designed to kill the bill. It works. The Legislators collectively do not want to be responsible for breaking the government. Of course, these bills will not do that, but the Fiscal Notes are so high that it scares them from voting for any one of these types of bills.
Some of the good bills that would have really helped the taxpayers are listed below. However, none ever had a chance of passing because of the high fiscal notes.
SB0082 / HB 984 – Increase Exemption on Hall Income Tax
This bill would have increased the Hall Income Tax exemption limit for persons over 65. A single filer’s limit would increase from $16,200 to $30,000 and joint filer’s from $27,000 to $60,000.
The Hall tax is an income tax on people who receive dividends and interest. Some dividends and interest are exempt from the tax, but most are not.
Many retirees over 65 years of age depend on dividend and interest income. Retirees need to keep the money to live on, yet the government just keeps on taking.
Bill Sponsors: Sen. Stanley and Rep. McManus
SB0046 / HB 116 – Appeals to Courts from Administrative Agencies shall be de novo.
This bill would change the system of appeals . At the present time, the system for most agencies is Judicial Review. This means the court can only review the record made at the administrative agency and cannot accept any new evidence,
Judicial Review system is repressive to the parties involved and enhances the powers of administrative agencies. Courts should have the power to consider new evidence at the first level of court. In this case, usually Chancery Court.
Bill Sponsors: Sen. Bunch and Rep. Bell
SB 0574 / HB 594 – Increase Exemption for Inheritance Tax
This bill was filed to increase the maximum exemption amount from $1,000,000 to $3,500,000 beginning with 2009.
This is a good bill, but no chance in passing because of the loss in revenue.
Bill Sponsors: Sen. Jackson and Rep. Coleman
The next bill is an even better one.
SB 0696 / HB 1540 – Phasing Out Inheritance Tax
This completely phases out the inheritance tax beginning with 2010 so that by 2014, there is no inheritance tax.
Bill Sponsors: Sen. Southerland and Rep. Litz.
SB0561 / HB 953 - Hall Income Tax Deduction for Long Term Care
This bill was worthy. It allowed the taxpayer to deduct the cost of long term care insurance premiums.
The fiscal note for each year’s cost was $ 2,464,000 for State and $1,478,400 for local governments.
Can you imagine?
Bill Sponsors: Sen. Norris and Rep. Harwell
SB 785 / HB 1878 - Increase Gift Tax Exemption
This bill would have made all donees the subject to the same tax rates and would have increased the gift tax exemption to that level allowed by the Federal Government for gift tax purposes. Presently the exemption level for the State gift tax is significantly less than the Federal gift tax exemption
Bill Sponsors: Senator Overbey and Rep. McDaniel
SB 750 / HB 559 - Permits voters to approve tax rate increases by refendum.
Bill Sponsors: Sen. J. Johnson and Rep. Kelsey
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