JEFFERSON CITY, MO (AP) – A Missouri senator has put forth a new proposal to cut income taxes that is about half the size of the original plan.
Legislation presented Wednesday in the Senate by Republican Will Kraus could gradually cut the state’s top individual income tax rate to 5.5 percent from the current 6 percent.
It also could phase in a 25 percent deduction for business income reported on individual income tax returns, and add a $500 tax deduction for lower-income individuals.
All of those tax cuts are half of the amounts originally approved by a Missouri Senate committee. They could not take effect until 2017, and only then if state revenues grew by at least $150 million.
The tax cuts are projected to eventually waive about $464 million of revenues annually.