In a historic achievement, the Missouri General Assembly has passed a new state income tax cut, overriding Gov. Jay Nixon to provide relief for all Missourians and stimulate growth among Missouri’s small businesses. The tax cut effort has overcome years of obstructionist efforts by Gov. Jay Nixon.
“This is a historic day for Missouri. What we have now is a law that takes a cautious, responsible approach to reducing our income tax burden. This law will provide stimulus for our small employers while protecting education funding,” said Daniel P. Mehan, Missouri Chamber president and CEO. “This tax cut illustrates the Missouri General Assembly’s commitment to job growth and creating a business-friendly climate. On behalf of the state’s entire business community, I’d like to thank them for this successful effort.”
The tax cut law was sponsored by Sen. Will Kraus, a Republican from Lee’s Summit. It will gradually lower the state’s income tax by nearly 10 percent and provide a new 25 percent deduction on an individual’s business income. The relief is targeted at small business and individual taxpayers, not corporations. The changes will not take effect until 2017. The cuts require $750 million in new state revenue to be created before taking full effect. The Missouri Chamber would like to thank Rep. Keith English, a Democrat from Florissant, who joined with House and Senate leadership to override the veto and make this tax cut law.
“As this law begins to take effect, all Missouri taxpayers will experience the benefits. Not only will their tax bills begin to shrink, they will also see more job opportunities being created as our small businesses have more funds to invest in growth,” Mehan said. “This was an outstanding effort. We thank our legislative leaders for making this a priority and for seeing through the governor’s attempts to confuse and obstruct tax relief. To our representatives and senators — job well done!”