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Article: Freeze in Corporate Net Income Tax Reduction Possible
- Article from:
- The State Journal
- Article date:
- January 16, 2009
- Author:
CopyrightCopyright State Journal Corporation Jan 16, 2009. Provided by ProQuest LLC. (Hide copyright information)
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CHARLESTON - The state's rainy day fund shrunk $133 million in the last six months of 2008 - a decline that could mean a freeze in the phase down of the state corporate net income tax in 2012.
The state's rainy day fund balance was $448 million as of Jan. 12, an amount equal to about 11.5 percent of the state's general fund budget. If the balance dips below 10 percent and stays there in 2011, then it will trigger an automatic freeze in the reduction of the corporate net income tax the following year.
The trigger was written into legislation enacting the tax phase-down in 2007. Since that time, the tax has dropped from 9 percent of federal taxable income to 8.5 percent this year. It will ...