Missouri lawmakers pass income tax cut

2 years 1 week 5 days ago Friday, May 18 2018 May 18, 2018 Friday, May 18, 2018 6:33:00 PM CDT May 18, 2018 in News
By: Micaela Dea, KOMU 8 Reporter
loading

JEFFERSON CITY –Missourians will soon be able to keep a little more money from their paychecks, after a state House committee voted to cut taxes Thursday night in a 101-40 vote.

Missouri's individual income tax rate is set to drop from 5.9 percent to 5.5 percent if state revenue meets the target revenue goal. The bill lawmakers passed Thursday would decrease another 0.4 percent off the tax rate, bringing it down to 5.1 percent.

January 1, 2018 marked the first year income tax cuts occurred for Missourians in nearly 90 years. The previous change happened in 1931.

Columbia CPA Aric Schreiner said, “I think it’s great whenever politicians lower taxes. It’s always a boost to all the taxpayers and to the economy, and it’s more money in their pockets.”

“Just to put it in context, if somebody has $50,000 of taxable income, it’s going to save them about $307,” Schreiner said.

Financial Planners of Missouri owner Adam Bethel said Missouri is trying to mirror recent national tax law.

"They’re trying to slightly reduce the taxes owed by most people, but not all, which would result in people being able to control a little bit more of your own income,” he said.

This year federal taxes were cut by two percent. Republican Gov. Eric Greitens called on lawmakers earlier this year on his tour to approve cuts worth more than $800 million.

According to the Congressional Budget Office, individual income taxes are the federal government's top source of revenue.

Schreiner said, “Basically anything over $9,000 has been getting taxed at a straight 6 percent and it’s been that way for decades, now anything over $9,000 is going to be taxed at 5.25 percent.”

If less money is coming in to Jefferson City for politicians to spend, Schreiner said, they still have to find money to spend on different programs.

“I don’t know how they’re going to work around replacing that money,” he said.

Bethel said when tax rates go down, people can keep and control more of their income. He said with the extra money coming in, it’s smart to save.

“For a lot of people it’s a great opportunity to increase retirement savings that will benefit them in the future. If you set aside $50 a month and put it into a retirement account, you’ll have more money in the end without costing you anything,” he said.

Even though consumers might not always act logically, Schreiner said, he is hopeful of the income tax cut. 

“When the economy picks up, people are more positive, instead of hoarding money and thinking the world’s going to end,” he said. “They’re more likely to buy that new car or take that vacation or even change jobs.”

Bethel said most people will live longer than when they can earn income, which forces them to make vital decisions. 

“People can think money isn’t important but it matters to everyone. Having an idea of what money comes in and what goes out on a weekly and a monthly basis is very important in order to plan for future,” he said.  

Schreiner said lower federal or state taxes is always a good thing as long as the politicians in charge of those funds properly run everything.

The House now needs to send the bill to Gov. Greitens, who needs to sign it for it to become law.

More News

Grid
List
JEFFERSON CITY - Gov. Mike Parson signed an executive order to declare a State of Emergency in Missouri because of... More >>
5 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 9:56:00 PM CDT May 30, 2020 in News
JEFFERSON CITY - A motorcycle driver is seriously injured after losing control of his motorcycle on Saturday. Around 3:40... More >>
9 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 6:06:00 PM CDT May 30, 2020 in News
JEFFERSON CITY (AP) — A new report shows black drivers were 95% more likely to be pulled over by Missouri... More >>
9 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 5:44:00 PM CDT May 30, 2020 in News
DES MOINES, Iowa (AP) — As if trips to the grocery store weren’t nerve-wracking enough, U.S. shoppers lately have seen... More >>
9 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 5:25:41 PM CDT May 30, 2020 in News
KBIA - The Missouri Commission for the Deaf and Hard of Hearing announced today that they’re making clear, accessible masks... More >>
10 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 5:14:59 PM CDT May 30, 2020 in News
COLUMBIA - The Boone County Fair Board is hosting a 4H and Future Farmers of America (FFA) Youth Fair... More >>
10 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 5:05:02 PM CDT May 30, 2020 in News
COLUMBIA MISSOURIAN - The Daniel Boone Regional Library plans to reopen all buildings Wednesday. There will... More >>
10 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 4:52:40 PM CDT May 30, 2020 in News
(CNN) -- The US military on Friday ordered several police units to be ready for potential deployment to Minnesota as... More >>
10 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 4:41:14 PM CDT May 30, 2020 in News
ST. LOUIS (St. Louis Post-Dispatch) — Protesters blocked a downtown St. Louis interstate and set a fire in the road... More >>
10 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 4:17:51 PM CDT May 30, 2020 in News
KANSAS CITY (AP) — A 7-year-old boy and and his 6-year-old brother died in an unincorporated area east of Kansas... More >>
11 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 4:13:56 PM CDT May 30, 2020 in News
COLUMBIA -- Americans have finally sent their own up to space again. Saturday’s SpaceX-NASA launch of the Falcon 9 Rocket... More >>
12 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 3:01:00 PM CDT May 30, 2020 in News
DALLAS COUNTY – Two people drowned Friday night in a Dallas County creek. Richard Berthiaume swam into Lindley Creek... More >>
12 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 2:54:29 PM CDT May 30, 2020 in News
COLUMBIA - The Clip Joint Salon customer Andrea is grateful for how the company's confirmed positive COVID-19 cases were handled... More >>
12 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 2:30:00 PM CDT May 30, 2020 in News
As COVID-19 spreads, KOMU 8 will continue to update you about the impacts on the community. ... More >>
12 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 2:21:00 PM CDT May 30, 2020 in News
COLUMBIA — As state and commercial testing is more available for the Missourians, the number of confirmed cases is rising.... More >>
13 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 2:00:00 PM CDT May 30, 2020 in News
COLUMBIA — MU's Office for Civil Rights & Title IX is investigating a Snapchat video that was widely criticized... More >>
14 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 12:51:48 PM CDT May 30, 2020 in News
ELDON - The Miller County Sheriff's Office hosted its annual 5K for the 7th year on Saturday. "Run with... More >>
15 hours ago Saturday, May 30 2020 May 30, 2020 Saturday, May 30, 2020 11:25:00 AM CDT May 30, 2020 in News
COLUMBIA - Two hair stylists at the downtown location of The Clip Joint have tested positive for COVID-19, KOMU 8... More >>
1 day ago Friday, May 29 2020 May 29, 2020 Friday, May 29, 2020 9:11:00 PM CDT May 29, 2020 in News
Columbia, MO
Broken Clouds 59°
4am 59°
5am 58°
6am 57°
7am 60°