Senate gives first-round approval to significant tax cut
By Ray McCarty, President/CEO, Associated Industries of Missouri
September 20, 2022 - After only a couple of hours of debate, the Missouri Senate gave first-round approval today to a tax cut package in a special session called by Governor Mike Parson to enact permanent tax relief.
The bill, SCS SB's 3 & 5, sponsored by Sen. Lincoln Hough and Sen. Andrew Koenig and handled on the Senate floor by Sen. Hough, would provide an immediate reduction in the individual income tax rate from the current rate of 5.2% to 4.95% in calendar year 2023, a likely reduction to 4.8% in calendar year 2024 (provided certain revenue requirements are met), and an additional reduction in future years based on increased revenues that could result in a tax rate as low as 4.5%.
"Associated Industries of Missouri applauds Governor Parson and legislative leaders for coming together to discuss enacting permanent tax relief in a responsible way that protects against cutting too much, too fast, and will allow Missourians to keep more of their hard earned money while weathering the current out-of-control inflation and economic recession," said McCarty. "The vast majority of businesses that report their taxes on their individual income tax returns will also benefit from this proposal and we hope the House will take the bill up and pass it and send it to Governor Parson for signature," he said.
The bill will be considered by a committee tomorrow and faces one additional vote in the Missouri Senate, then will move to the Missouri House for consideration.