Tax cuts, credits pass different chambers in Missouri General Assembly
JEFFERSON CITY, Mo. (KMIZ)
Legislators passed three bills Wednesday cutting income taxes and providing agricultural tax credits.
The Missouri Senate voted today on a tax break bill, which was passed with a vote of 24 to 4 in its favor. Current law provides for reductions to the top rate of income tax to an eventual rate of 4.8% over a period of years. In this bill, three additional potential reductions into the top rate of tax to an eventual rate of 4.5%. Also included in this act is an authorization of a one time tax credit for the 2021 tax year. The tax credit will be $325 dollars for taxpayers filing single, married filing separately, or head of household with an adjusted gross income of $150,000 or less. A credit of $650 will be given to for taxpayers filing married filing jointly and with a Missouri adjusted gross income of less than $300,000. The bill would cut the top income tax rate from 5.3% to 4.95% in 2023. Most Missourian's pay the top income tax rate. Income taxes could gradually fall to as low as 4.5% if the state meets revenue growth benchmarks tied to inflation. The measure also eliminates the lowest tax bracket, meaning earners who bring in less than about $1,000 a year would no longer have to pay state income taxes.
The whole idea behind the tax cut is to give money back to Missourians.
"The idea is that as we grow, as the state grows, as the economy grows we're able to give more money back to Missourians, because it's not our money, it's not the states money, it's taxpayer's money," Sen. Caleb Rowden (R-Columbia) said.
This bill has many officials on the same page from opposing parties. All Republicans voted yes on it, and so did multiple Democrats.
"Senate Democrats are here to fight for working families, not help the rich CEOs with their second mansion," Sen. John Rizzo (D-Kansas City) said. "We support middle-class tax relief, not corporate handouts."
The income tax plan now goes to the House of Representatives. If passed by the chamber without changes, it will go to Gov. Mike Parson's desk for his signature.
The Agriculture Tax Credit was passed today with a vote of 83 in favor and only 28 opposed in the House of Representatives. This bill has been created to help farmers, woodsmen and ranchers find stability and profit in their yields of goods. The idea is so that they may be able to keep up and continue with agriculture giants and not be snuffed out by corporations.
Some representatives spoke about their skepticism, and the potential for corruption as there are members of government who are farm owners. A speaker who supported the bill cited "pettiness" as a reason not to vote yes due to the fact bills very similar to this one have been passed in the past. He stressed the importance of valuing these workers due to the fact they are the providers.
The Senate passed a similar version of the tax credit bill on Wednesday.
