How does tax reform work?
With the increased personal exemption, you will no longer pay taxes on the first $6,000 you earn per family member. If you have a family of four, you do not pay any state income taxes on the first $24,000 you earn. For a family of five, the exemption rises to $30,000, and so on. The individual income tax will also be increased to 4.5 percent. For many families, the increased rate will be offset by the increased personal exemption. These reforms mean that working families will receive much needed tax relief, and higher income families will pay only a moderate increase. The chart that follows shows how these reforms will affect a family of four at different income levels. Family Income Current Tax* Proposed Tax* Amount Change Percentage $30,000 $588 $162 -$426 -72% $45,000 $1,002 $783 -$219 -22% $60,900 $1,225 $1,225 $0 0% $75,000 $1,373 $1,519 $146 11% $100,000 $1,890 $2,295 $405 21% * Individual income taxes are calculated as a percent of Federal Adjusted Gross Income, which is estimat
