Missouri Legislature passes income tax cut

Missouri Legislature passes income tax cut
Posted at 8:29 PM, May 17, 2018
and last updated 2018-05-17 21:29:31-04

JEFFERSON CITY, Mo. (AP) — Missouri lawmakers have passed an income tax cut for most Missourians.

House lawmakers voted 101-40 Thursday to give the measure final approval. If enacted, the bill would cut the top individual income tax rate from 5.9 percent to 5.5 percent in January 2019.

Individuals' income tax rate would gradually drop to 5.1 percent if the state meets revenue targets. Federal tax deductions would be scaled back to make up for the loss in revenue.

Fiscal estimates would put the price tag at $5.8 million once the measure is fully implemented in fiscal year 2023.

Still pending is a proposed corporate income tax rate cut from 6.25 percent to 3.9 percent. Lawmakers face a Friday deadline to pass legislation.