Missouri of House of Representatives committee passes income tax cut bill

JEFFERSON CITY, Mo. (KMIZ)

A Missouri House of Representatives committee passed an income-tax-cut bill Wednesday, which is expected to be discussed on the full floor Thursday.

Budget committee members met for more than five hours about several proposed measures that cover income tax cuts. Gov. Mike Parson first called for the special session in July after he vetoed $500 million in tax rebates previously included in the state budget.

The governor wants state lawmakers to address proposed income tax cuts and the extension of agriculture tax credits. Last week, the Missouri Senate approved a proposal estimated to save Missourians about $355 million.

The measure -- sponsored by Sen. Lincoln Hough -- is a compromise of the governor's proposed $700 million tax cuts. It does not include to changes Parson proposed to the standard deduction.

Several amendments were added to the bill in the budget committee. Budget Chair Rep. Cody Smith (R-Carthage) added an amendment in committee that would lower the corporate income tax from 4% to 2%. It changes the estimated fiscal impact to the state budget to about $2 billion.

Parson's proposal was expected to lower the top tax bracket from 5.3% to 4.8%. The governor said the cuts would save residents around $700 million.

Opponents believe the proposed income tax credits wouldn't reach many Missourians on fixed incomes and that the state can't afford such a large permanent cut.

State representatives plan to return to the Capitol at noon Thursday to continue the special session.