Missouri Budget Project says income tax bill won't help most people

8 months 1 week 5 days ago Thursday, July 12 2018 Jul 12, 2018 Thursday, July 12, 2018 7:12:00 PM CDT July 12, 2018 in News
By: Hannah Thomas, KOMU 8 Reporter
loading

COLUMBIA - Governor Mike Parson signed a bill Thursday that will cut the state's highest individual income tax rate from 5.9 percent to 5.4 percent in 2019.

This makes it the largest single year income tax cut in state history.

House Bill 2540 will take effect on the heels of earlier tax cuts passed by state legislature.

A law passed in 2014, Senate Bill 509, allowed gradual income tax cuts based on state revenue growth.

State Treasurer Eric Schmitt confirmed revenue growth will trigger a cut from the current 5.9 percent rate down to 5.8 percent in January because of the earlier law. That covers the top tax bracket, which applies to most Missourians.

On top of that, the new law Parson signed will bring the rate down 0.4 percent.

The rate could gradually go down to 5.1 percent depending on state revenue growth, making Missouri the 14th lowest income tax state in the country.

In a press release, Parson called this the “first step in an ongoing process.”  He also said there is a need to continue to make the Missouri tax code simple and fair.

However, the director of communications of the Missouri Budget Project, a non-profit public policy that analyzes state budget, tax, health and economic issues, said working class Missourians will not see any major changes to their tax forms.

"I am confident in saying that it has negligible impacts on our income except those of the wealthiest Missourians," Traci Gleason said. "And the state earned income tax credit will have a broader impact on the lower and moderate income Missouri families."

Gleason said the bill is very complicated.

"A lot of working families are going to see negligible differences as a result of it," Gleason said. "It's very complicated because in a way it works with other tax provisions that have been implemented so for many of them it would be a wash."

Gleason said more work needs to be done for Missourians when it comes to HB2540.

"If we'd like to achieve the goal of making our tax code fairer and helping our community's needs, then we have more work to do in the upcoming session."

More News

Grid
List
Missouri State Representative Rebecca Roeber was taken to the hospital with serious injuries Monday after a Morgan County car crash.... More >>
5 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 10:09:00 PM CDT March 25, 2019 in News
JEFFERSON CITY - Monday marked the first day Missourians could apply for Real IDs -- federally compliant IDs. Missouri... More >>
8 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 8:00:00 PM CDT March 25, 2019 in News
COLUMBIA - Battle High School students are taking a new math class, and it doesn't involve just sitting in a... More >>
8 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 7:33:00 PM CDT March 25, 2019 in News
COLUMBIA - The University of Missouri filed an appeals brief with the NCAA appeals committee. In the brief, Mizzou... More >>
9 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 6:12:00 PM CDT March 25, 2019 in Sports
COLUMBIA - The federal government's ban on bump stocks goes into effect Tuesday, making Monday the last day to legally... More >>
10 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 5:31:00 PM CDT March 25, 2019 in News
COLUMBIA - Election candidates met Monday for another round of public talks, this time focusing on policies, accessibility and accommodations... More >>
11 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 4:22:00 PM CDT March 25, 2019 in News
JEFFERSON CITY- State representatives gathered Monday to announce the introduction of the Missouri First Step Act later this week. ... More >>
13 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 3:04:00 PM CDT March 25, 2019 in News
COLUMBIA - Four more people have joined the list of people suing MU Health Care doctors and the Curators of... More >>
13 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 2:35:00 PM CDT March 25, 2019 in News
COLE COUNTY - The Cole County Sheriff's Office said they seized $20,000 in illegal steroids during a traffic stop Sunday... More >>
14 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 1:25:00 PM CDT March 25, 2019 in News
JEFFERSON CITY -Authorities are investigating the cause of a fire at a business in Jefferson City. Firefighters went to... More >>
15 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 12:17:00 PM CDT March 25, 2019 in News
JEFFERSON CITY, Mo. (AP) — The Missouri Department of Revenue is now offering licenses and identifications that comply with stricter... More >>
17 hours ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 10:52:00 AM CDT March 25, 2019 in News
IOWA CITY - In the Regional Finals of the Women's NCAA Tournament, the Mizzou Tigers lost to the Iowa Hawkeyes... More >>
1 day ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 12:22:10 AM CDT March 25, 2019 in Sports
MOBERLY - A woman was arrested in Moberly Saturday evening for driving while intoxicated with two children in the car,... More >>
1 day ago Monday, March 25 2019 Mar 25, 2019 Monday, March 25, 2019 12:02:00 AM CDT March 25, 2019 in News
COLUMBIA - Missouri forward Jontay Porter re-tore his ACL Saturday while rehabbing in Colorado, Mizzou Athletics confirmed to KOMU. ... More >>
1 day ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 10:21:00 PM CDT March 24, 2019 in Sports
(CNN) -- A triumphant President Donald Trump emerged Sunday to claim "complete and total exoneration" after special counsel... More >>
1 day ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 9:02:00 PM CDT March 24, 2019 in News
COLUMBIA - Law enforcement agencies are turning to social media to connect with the people they serve. Police departments, sheriff's... More >>
1 day ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 6:43:00 PM CDT March 24, 2019 in News
SALINE COUNTY - A body was recovered from the Missouri River Sunday afternoon. The Saline County Sheriff's Office said... More >>
1 day ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 4:50:00 PM CDT March 24, 2019 in News
If you or someone you know might be at risk of suicide, here's how to get help : In the... More >>
1 day ago Sunday, March 24 2019 Mar 24, 2019 Sunday, March 24, 2019 3:35:00 PM CDT March 24, 2019 in News
Columbia, MO
Broken Clouds 42°
4am 38°
5am 37°
6am 36°
7am 35°