Missouri income tax cut heads to governor’s desk
JEFFERSON CITY, Mo. (KMIZ)
The Missouri House passed a bill to cut the state's income tax Thursday, sending the measure to Gov. Mike Parson for his signature.
The House approved the cut 98-32. The most-immediate impact will be felt in January 2023, when the top rate will drop from 5.3% to 4.95%. The Senate passed the measure earlier this month.
"Today's action will provide real relief to taxpaying Missourians," Parson tweeted. "Relief that is even more critical now as Missouri families face rising grocery bills, high gas prices, and record inflation."
Parson called for the special session in July to cut income taxes and extend some agricultural tax credits.
The income-tax cut is expected to cost the state about $1 billion, according to lawmakers' estimates. Critics say it will strip from the state money that would be well spent on social programs and the cuts will mainly benefit the wealthy.
“The General Assembly has once again passed big tax changes that disproportionately help the wealthiest and leaves out one-third of Missourians altogether,” Amy Blouin, president and CEO of Missouri Budget Project, said in a news release. “Millionaires will get thousands of dollars from the bill, but those middle-income folks who actually do see a cut won’t get much help in the face of today’s rising costs.”
The Missouri Budget Project estimated a family with a $52,000 yearly income will see about $5.50 per month in tax savings.
Democratic lawmakers who oppose the final bill say it acts as a tax cut for the wealthy, bound to harm the poorest Missourians.
"We're not even properly funding things now and now we're gonna cut taxes by a billion dollars, this is ridiculous," Rep. David Tyson Smith (D-Columbia) said.
Some Republicans wanted to take the tax cuts even further.
Rep. Cody Smith (R-Carthage) is the chair of the House Budget Committee. He tried to add an amendment that would gradually eliminate the corporate income tax. The amendment and others added during committee on Wednesday were removed after Parson sent a message to lawmakers saying he would not expand the call for special session to allow for these additions.
Although lawmakers have come to an agreement on income-tax cuts, the special session is not over. Agricultural tax-credit extensions are still on the table. Both chambers have passed their own version of the bill, but have yet to come to an agreement on which one to send to the governor's desk.
