Missouri House Sends Tax Cut Bill to Parson

On Thursday, September 29, the Missouri House approved the Senate’s bill to cut individual income tax rates. The bill goes to Governor Mike Parson’s desk, where he is expected to sign it into law next week.

The House vote was 98-32 in favor of the bill, to cut income taxes for individuals from 5.3% to 4.95% beginning next year. The bill will also add additional cuts until the rate hits 4.5%.

“We are thrilled that the General Assembly has answered our call to cut Missourians' taxes and return some of their hard-earned dollars. We called this special session to pass and extend critical support to our agriculture industry and reduce Missourians' income tax burden, and that's exactly what we are accomplishing,” said Governor Parson. “Next week, we look forward to progress being made on the agriculture bill, so we can sign both pieces of legislation into law.”

Taxpayers who make between $22,000 and $66,000 per year would on average see savings of between $10 and $50 next year because of the income tax cut, according to an analysis by the Missouri Budget Project. Savings for those workers would amount to roughly $29 to $131 a year on average, once the income tax rate hits 4.5%.

Taxpayers who make $66,000 to $110,000 a year would on average see about $120 in immediate savings and $275 per year in savings once the full tax cuts kick in.

KPGZ News - Brian Wats contributed to this story