New estimate puts Missouri tax cut bill at $620M
JEFFERSON CITY, MO (AP) – A new estimate puts the eventual cost of a Missouri Senate income tax cut plan at more than $620 million annually.
The new projection from legislative researchers is to be considered Monday by a Senate fiscal review committee. If the panel signs off, the full Senate then could vote to pass the legislation on to the House.
Sponsoring Sen. Will Kraus had previously estimated the tax cut would waive less than $500 million of revenues annually, once fully implemented.
The bill would phase in a half-a-percentage-point reduction in Missouri’s top individual income tax rate and a new 25 percent deduction for business income reported on individual tax returns. It also would expand the deductions available for lower income individuals and require the tax brackets to be adjusted annually for inflation.