HB 881 -- Income Tax Deduction for Federal Income Taxes Paid

Sponsor:  Scott

This bill allows both individual and corporate income taxpayers
to fully deduct from income tax all federal income taxes paid by
the taxpayer beginning January 1, 1999.  Under current law,
individuals are allowed to deduct $5,000 for a single taxpayer
and $10,000 for a married couple.  Corporations may deduct 50%
of federal income taxes paid.

The bill also replaces the reduction of funds in the Outstanding
Schools Trust Fund as the result of increasing the deduction for
federal income taxes by earmarking a portion of general revenue
based on a percentage of the deduction for federal income taxes
taken by all corporations.