taxable income

At least $8,700 but less than $17,350 $174 plus 4.5%

of the excess

over $8,700

At least $17,350 but less than $34,700 $563 plus 7% of

the excess over

$17,350

$34,700 or more $1,778 plus 8.5%

of the excess

over $34,700

Sec. A-8. 36 MRSA §5111-C is enacted to read:

§5111-C.__Reductions in individual income tax rates

1.__Rates reduced.__For tax years beginning on or after January 1, 2005, the tax rates contained in section 5111, subsections 1-C, 2-C and 3-C must be adjusted as follows.

A.__For tax years beginning in 2005, the applicable tax rates are those specified in section 5111, subsections 1-C, 2-C and 3-C except that the rate of 8.5% is reduced to 8.45%.

B.__For each tax year beginning in 2006 and 2007, the tax rate that was applicable in the immediately preceding tax year must be multiplied by an amount equal to the indexing suspension factor determined in accordance with subsection 3.

C.__For each tax year beginning in 2008 and 2009, the tax rate that was applicable in the immediately preceding tax year must be reduced by the rate reduction factor determined in accordance with subsection 2.__The resulting rate must be multiplied by the indexing suspension factor determined in accordance with subsection 3.

D.__For each tax year beginning after 2009 but before 2018, the rate that was applicable in the immediately preceding tax year must be reduced by the rate reduction factor determined in accordance with subsection 2.

E.__For tax years beginning in or after 2018, the rates as determined for tax years beginning in 2017 apply.

The rates determined pursuant to this subsection must be rounded up to the nearest 1/100 of a percentage point.__The State Tax Assessor shall incorporate the changes arising from this section