Missouri lawmakers move forward with legislation to lower income taxes
MISSOURI (KCTV) - Missouri lawmakers are moving forward with legislation to lower income taxes, but it’s not as low as what the governor proposed.
Some Republican senators want deep tax cuts while democrats are pushing for one-time checks this year instead. Gov. Mike Parson wants to limit tax cuts to a maximum $700 million price tag per year.
The Senate’s plan would cut the top income tax rate from the current 5.3% to 4.95%. Parson asks to drop it to 4.8%.
Some Democratic leaders argue the Republican move could mean less money for education, infrastructure, and other expenses in the future, while the plan overall gradually cuts the tax rate by how state revenue looks after a year, as it is tied to inflation.
The plan needs another vote of approval by the full Senate before it can move to the House.
Democratic Sen. Jill Schupp said, “A lot of money that we have in our budget and in our surplus is really one-time money as a result of crises that have occurred, we’re not going to keep being funded by the federal government in the way that we have been where we have a surplus budget”
Republican senators Lincoln Hough and Andrew Koenig proposed the two amendments that formed the final bill. Koenig calls it a fair agreement.
“I think this is a very reasoned approach to this, we’re not cutting too fast, I don’t believe so,” he said. “Currently, this year revenues are up by $700 million, just within the first couple of months so I think ultimately we’ll get to that 4.8 that the governor had in his call.”
We heard from a lawmaker earlier this week of a sports betting hearing, but one is not scheduled. It will not be brought back up unless the governor brings it back.
Some information from the Associated Press was used in this story.
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