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House gives final passage to broad-based tax cut bill

The Missouri House of Representatives Wednesday gave final passage to a Senate bill that makes broad-based tax cuts for many of the state’s businesses and individuals.

By a margin of 104-48 the House voted to send SB 509 to Governor Nixon’s desk.

The bill would phase in a tax cut in five steps starting in the 2017 tax year.

The Senate 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.

AIM president Ray McCarty issued the following statement upon passage of the bill:

“Today, the Missouri House and Senate have taken a bold step to help Missouri employers create jobs and help Missouri compete in a global economy by lowering the tax burden on our small businesses and individuals. State services are protected because these tax cuts are only taken from the growth in state revenues. There are no excuses to veto this bill – no technical mistakes, no real or artificial concerns for education funding. Simple math tells everyone that the $750 million in growth that is required, minus the $620 million cost of the tax cuts, leaves $130 million in additional state money, even if the tax cut does not spur additional growth. Associated Industries of Missouri calls on Governor Nixon to sign this bill without delay.”

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