AIM expresses disappointment in veto of SB 509, calls for override
Associated Industries of Missouri is disappointed in the Governor’s veto of SB 509.
“This important legislation would provide a tax break to working families and 95% of business owners and operators in Missouri and help Missouri compete in a global economy,” said AIM president Ray McCarty. “As one of our board members put it in a recent press conference on the bill, employers and workers had to weather the downturn in the economy during the recent recession and this bill will help workers and employers participate in the recovery.”
The bill would phase in a tax cut in five steps starting in the 2017 tax year.
The legislation would gradually cut the top individual income tax rate to 5.5 percent from the current 6 percent and phase in a 25 percent deduction for business income reported on personal tax returns. Those tax cuts would occur in five steps. Each step of the tax cuts would only occur if state revenues grow by at least $150 million over the high mark of the previous three years.
The bill also would provide an additional $500 tax deduction on top of the state’s current $2,100 deduction for residents with incomes below $20,000.
“It is important to note that the ‘issues’ raised by some in recent weeks is in fact not an issue at all,” said McCarty. “The bill would NOT cause a revenue loss to the state of Missouri, taxpayers in the top Missouri bracket will continue to pay the top income tax rate, all the benefits of the bill are taken only from growth in tax revenues, schools and all other state services are protected and there is no reason the State of Missouri should not allow this income tax benefit as the tax revenues grow.”
Associated Industries of Missouri calls for the legislature to override the veto before the end of the legislative session on May 16.