A tax bill with the intention of making Missouri’s tax rates more competitive was third read and passed by the Missouri Senate and moved into the House Ways and Means Committee. The bill passed out of the Senate on a 23-9 vote.
Senate Bill 509, sponsored by Sen. Will Kraus, R-Lee’s Summit, contains a number of tax cutting provisions. Among them, the bill would cut Missouri’s top income tax rate from 6 percent to 5.5 percent over a number of years, beginning in two years. The tax cut would only phase in during years when the state’s general revenue collections grow by at least $150 million.
In addition, the bill creates an individual income tax deduction for business income, which would also be phased in beginning in two years. The new deduction would allow Missouri businesses to deduct up to 25 percent of their business income. This also would be triggered by state revenues increasing by $150 million.
The bill also includes a new $500 deduction for Missourians making less than $20,000.
It is estimated that the tax cut would cost Missouri approximately $450 million.
“This bill offers aggressive tax relief to all Missourians, freeing up greater resources for businesses and individuals to invest in our economy and job creation,” said Tracy King, Missouri Chamber vice president of governmental affairs. “At the same time, these bills protect our state’s important investments in areas such as education. We continue to advocate for an approach that both reduces our tax burden while providing adequate funding to help ensure our students are receiving the education they need for tomorrow’s economy.”
The Missouri Chamber supports efforts to reduce taxation in our state while holding education funding harmless.
For more information about tax issue, please contact Tracy King, Missouri Chamber vice president of governmental affairs, at email@example.com, or by phone at 573-634-3511.