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

1 week 23 hours 25 minutes 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
CALLAWAY COUNTY - A Steedman man was sentenced to 12 years in prison after pleading guilty to charges of domestic... More >>
1 hour ago Friday, July 20 2018 Jul 20, 2018 Friday, July 20, 2018 5:22:00 PM CDT July 20, 2018 in Continuous News
ST. JOSEPH (AP) — A Missouri man has pleaded guilty in the fatal beating of his 77-year-old grandmother while he... More >>
2 hours ago Friday, July 20 2018 Jul 20, 2018 Friday, July 20, 2018 3:59:00 PM CDT July 20, 2018 in Continuous News
(CNN) -- The FBI is in possession of a recording between President Donald Trump and his former personal attorney Michael... More >>
2 hours ago Friday, July 20 2018 Jul 20, 2018 Friday, July 20, 2018 3:38:16 PM CDT July 20, 2018 in Continuous News
JEFFERSON CITY – House Minority Leader Gail McCann Beatty will resign from the Missouri House of Representatives effective Sunday in... More >>
5 hours ago Friday, July 20 2018 Jul 20, 2018 Friday, July 20, 2018 12:57:00 PM CDT July 20, 2018 in Top Stories
COLE COUNTY — The Cole County Sheriff’s Department responded to possible weapons violation on Thursday night. When the officers... More >>
6 hours ago Friday, July 20 2018 Jul 20, 2018 Friday, July 20, 2018 11:47:00 AM CDT July 20, 2018 in Top Stories
(AP) - President Donald Trump has indicated that he's willing to hit every product imported from China with tariffs and... More >>
9 hours ago Friday, July 20 2018 Jul 20, 2018 Friday, July 20, 2018 8:52:00 AM CDT July 20, 2018 in News
BRANSON - A press conference was held Friday morning following Thursday's fatal boat capsizing at Table Rock Lake. As... More >>
11 hours ago Friday, July 20 2018 Jul 20, 2018 Friday, July 20, 2018 7:23:00 AM CDT July 20, 2018 in News
BRANSON (AP) — The Latest on a deadly tourist boat accident in Missouri (all times local): 10:30 a.m. ... More >>
11 hours ago Friday, July 20 2018 Jul 20, 2018 Friday, July 20, 2018 7:16:00 AM CDT July 20, 2018 in News
BRANSON - The recent boat incident that killed 11 and injured seven in Branson isn't the first time Ride the... More >>
16 hours ago Friday, July 20 2018 Jul 20, 2018 Friday, July 20, 2018 2:06:00 AM CDT July 20, 2018 in News
COLUMBIA - Thursday evening around 9:00 pm, two cars collided head-on at the intersection of Worley St. and W. Boulevard.... More >>
19 hours ago Thursday, July 19 2018 Jul 19, 2018 Thursday, July 19, 2018 11:14:00 PM CDT July 19, 2018 in News
KANSAS CITY (AP) — A southern Missouri sheriff and a subordinate with whom he was having a romantic relationship have... More >>
19 hours ago Thursday, July 19 2018 Jul 19, 2018 Thursday, July 19, 2018 10:46:00 PM CDT July 19, 2018 in News
COLUMBIA - The City of Columbia confirmed Friday the household hazardous waste collection is cancelled. The waste collection was... More >>
20 hours ago Thursday, July 19 2018 Jul 19, 2018 Thursday, July 19, 2018 10:16:00 PM CDT July 19, 2018 in News
(CNN) -- More illnesses have been reported across the United States in two separate cyclospora outbreaks, federal health officials said... More >>
21 hours ago Thursday, July 19 2018 Jul 19, 2018 Thursday, July 19, 2018 9:31:35 PM CDT July 19, 2018 in News
(CNN) -- Gun-rights activists have reached a settlement with the government that... More >>
21 hours ago Thursday, July 19 2018 Jul 19, 2018 Thursday, July 19, 2018 8:57:04 PM CDT July 19, 2018 in News
COLUMBIA - The Loop CID met with the Planning and Zoning Committee Thursday night to discuss future plans for Business... More >>
22 hours ago Thursday, July 19 2018 Jul 19, 2018 Thursday, July 19, 2018 7:46:00 PM CDT July 19, 2018 in News
DES MOINES, Iowa - Pella Regional Health Center spokeswoman Billie Rhamy confirmed Thursday evening injuries were minor and all patients... More >>
23 hours ago Thursday, July 19 2018 Jul 19, 2018 Thursday, July 19, 2018 6:49:00 PM CDT July 19, 2018 in Continuous News
(CNN) - President Donald Trump hopes to welcome Russian President Vladimir Putin in Washington this fall, White House press secretary... More >>
1 day ago Thursday, July 19 2018 Jul 19, 2018 Thursday, July 19, 2018 5:09:00 PM CDT July 19, 2018 in News
JEFFERSON CITY - Planned Parenthood advocates demonstrated a mock health care waiting room in Governor Parson's office Thursday. The... More >>
1 day ago Thursday, July 19 2018 Jul 19, 2018 Thursday, July 19, 2018 4:16:00 PM CDT July 19, 2018 in News
Columbia, MO
Broken Clouds 88°
7pm 89°
8pm 86°
9pm 82°
10pm 79°