Bill > A4202

This bill increases the gross income tax rate on income exceeding $1,000,000 for taxable years 2011 and 2012, imposing a new tax rate of 10.75% on income above that threshold, with slightly different base tax amounts depending on filing status. It also expands the exclusion for pensions, annuities, and other retirement income for certain taxpayers starting in 2011, allowing individuals aged 62 or older, or those eligible for disability benefits, to exclude up to $20,000 (or $10,000 for married filing separately) if their gross income is less than $110,000, though this exclusion is reduced for those with gross income between $100,000 and $110,000. Additionally, employers are protected from penalties for insufficient tax withholding on payments made before October 1, 2011, that are directly related to these new tax rate changes.