House approves historic tax cut legislation
Wed, 03/29/2023 - 3:26pm admin
Includes Rep. Travis Smith’s plan to provide tax relief to job creators
The Missouri House of Representatives gave initial approval to historic tax relief legislation that includes a tax cut plan sponsored by state Rep. Travis Smith. Smith’s HB 660 was combined with HB 816 to provide $1 billion in tax relief for Missouri families, retirees, and businesses. The combined legislation ( HBs 816 & 660 ) received first-round approval on Tuesday, March 22.
One part of the package sponsored by state Rep. Dirk Deaton, R-Noel, would reduce the top rate of personal income tax for Missouri taxpayers from 4.95% to 4.5% on January 1, 2024. The bill preserves existing triggers that could further lower the rate to 4.05% if state revenues continue to grow at a healthy rate.
“Missourians know best how to spend their own hard-earned dollars and I truly believe our state will be better off when we put more money in the pockets of our people rather than in government coffers.
Especially during these times of skyrocketing prices, every additional dollar matters and I’m proud to join Representative Deaton and my colleagues to offer substantive tax relief to families who need and deserve it,” said Smith, R-Dora.
The legislation also contains Smith’s HB 660 provision to lower the corporate income tax. Beginning January 1, 2024 the bill would drop the current tax rate of 4% down to 2%. If state revenues continue to increase, the bill would allow additional 1% decreases until the corporate income tax is phased out entirely.
Smith said the lowered tax rate for businesses will help existing companies create more jobs and will entice new businesses to set up shop in Missouri.
“When we look at where economic growth and job growth are taking place across the nation, it’s in states that have a low tax burden. We want Missouri to be an ideal location for companies to do business and to create family-supporting jobs that our hard-working citizens need and deserve.” Finally, the bill approved the House contains a provision originally offered by state Rep. Dave Evans, R-West Plains, that would exempt social security benefits from taxation.
“We want Missouri to be a state that is friendly to our retirees and that will be an ideal location for retirees to make their home. After a lifetime of paying taxes I think it’s more than fair that we protect the benefits our seniors have earned from being taxed,” said Smith.
The bill now requires an additional vote in the House before moving to the Senate for consideration.
The bill has until May 12 to receive approval from both chambers.