HB 1390 -- Income Tax:  Federal Income Tax Deduction

Sponsor:  Blunt

This bill authorizes a 100% state income tax deduction for
federal income taxes paid by individuals and corporations.
Under current law, individuals are allowed to deduct up to
$5,000 on a single return and $10,000 on a married filing
combined return and corporations are allowed to deduct 50% of
federal income tax paid.

The bill also replaces with general revenue funds the lost
transfers to the Outstanding Schools Trust Fund resulting from
the increased deduction for federal income taxes paid by
corporations.

The bill will apply to tax year 2000 and thereafter.