Yesterday, the Missouri House voted in favor of SB 509, a bill which cuts the income tax by $620 million annually. The legislation would cut Missouri’s individual income tax rate for the first time in almost a century, by gradually lowering the state’s highest income tax rate to 5.5% starting in 2017. The bill also includes a 25% tax break for small business owners.
”This is a broad-based tax reform that would make our state more competitive and cuts taxes for every Missourian that pays a tax,” said Rep. Andrew Koening, R-Manchester. With this tax cut, Missouri joins the group of states such as Wisconsin and Kansas which have cut taxes since the recession.
Last year, Missouri Governor Nixon vetoed a proposed tax cut and hinted he would do the same this year. SB 509 passed with 104 votes and 109 votes are needed to overturn a veto. ATR encourages you to call Gov. Nixon’s office (573-751-3222) and tell him to sign SB 509, much needed tax relief for Missouri.
Photo credit: David Shane