Gov. Parson vetoes tax rebate and plans call for special session on permanent tax relief in 2023
July 1, 2022 - As Governor Mike Parson today announced his veto of HB 2090, he simultaneously announced his support for a broader tax package that would provide permanent tax relief for all Missouri taxpayers - provided legislators agree with his plan in a special session he said he will call for that purpose.
Governor Parson's plan would increase the standard deduction to $16,000 for individual and $32,000 for joint taxpayers, eliminate some tax brackets and reduce the Missouri income tax for all Missourians. The Governor said he would work with legislators on the actual rate and the cost of the plan.
HB 2090 contained a tax break that was not funded - planned to be $500 for individuals and $1,000 for joint taxpayers, but limited to an arbitrary amount, meaning the full credit would not have been realized by any eligible taxpayer. The governor said the tax break would have been far less than people would have expected and would have been a one-time payment.
Governor Parson said he favors reducing taxes permanently for all Missourians over a one-time payment. He said he would like the permanent tax relief to be effective January 1, 2023.
More on this as we receive additional details.