Missouri lawmakers pass income tax cut

1 year 13 hours 38 minutes 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
COLUMBIA - The Orr Street Farmers and Artisans Market is now open every Sunday from 9 a.m. till 1 p.m.... More >>
18 minutes ago Sunday, May 19 2019 May 19, 2019 Sunday, May 19, 2019 1:42:00 PM CDT May 19, 2019 in Continuous News
MOBERLY - A woman was arrested in Moberly Saturday night after a report of a shoplifting at Gordman's department store.... More >>
1 hour ago Sunday, May 19 2019 May 19, 2019 Sunday, May 19, 2019 12:17:00 PM CDT May 19, 2019 in Continuous News
COLUMBIA - Avengers super-fan Jace Aitkens needs a new kidney. His mom, Kayla Aitkens, said it all started when... More >>
6 hours ago Sunday, May 19 2019 May 19, 2019 Sunday, May 19, 2019 7:55:00 AM CDT May 19, 2019 in News
COLUMBIA - The 2018-2019 school year is wrapping up for students in Columbia, but they're still learning important skills. ... More >>
8 hours ago Sunday, May 19 2019 May 19, 2019 Sunday, May 19, 2019 6:00:00 AM CDT May 19, 2019 in News
COLUMBIA - Strong storms pummeled mid-Missouri Saturday evening, leaving lots of damage in their wake. A Facebook User sent... More >>
17 hours ago Saturday, May 18 2019 May 18, 2019 Saturday, May 18, 2019 8:54:00 PM CDT May 18, 2019 in News
KINGDOM CITY - High winds blew a tractor-trailer off the road at the intersection of Highway 54 and I-70 Saturday... More >>
18 hours ago Saturday, May 18 2019 May 18, 2019 Saturday, May 18, 2019 7:48:00 PM CDT May 18, 2019 in News
COLUMBIA - People who suffer from chronic pain can now turn to alternative treatments besides opioids. Dr. Amanda Alcamo... More >>
19 hours ago Saturday, May 18 2019 May 18, 2019 Saturday, May 18, 2019 7:00:00 PM CDT May 18, 2019 in News
COLUMBIA - Thousands of customers throughout mid-Missouri lost power Saturday, according to the Association of Missouri Electric Cooperatives. The... More >>
20 hours ago Saturday, May 18 2019 May 18, 2019 Saturday, May 18, 2019 5:53:00 PM CDT May 18, 2019 in News
COLUMBIA - The Missouri Abortion Bill has passed in the House and Senate.  Saturday, mid-Missourians gathered outside of Columbia... More >>
23 hours ago Saturday, May 18 2019 May 18, 2019 Saturday, May 18, 2019 2:18:00 PM CDT May 18, 2019 in News
MONITEAU COUNTY - Three people are in custody after they reportedly tried to run away from law enforcement Friday. ... More >>
1 day ago Friday, May 17 2019 May 17, 2019 Friday, May 17, 2019 9:02:00 PM CDT May 17, 2019 in News
COLUMBIA - Mizzou Athletics announced the team spaces and offices in it's new south end zone facility will be completed... More >>
1 day ago Friday, May 17 2019 May 17, 2019 Friday, May 17, 2019 5:53:00 PM CDT May 17, 2019 in News
MOBERLY - A day shy of his 95th birthday, a World War II veteran had the early birthday surprise of... More >>
1 day ago Friday, May 17 2019 May 17, 2019 Friday, May 17, 2019 3:12:00 PM CDT May 17, 2019 in News
JEFFERSON CITY - Some Missouri lawmakers say they haven't given up on a bipartisan bill designed to change Missouri’s criminal... More >>
1 day ago Friday, May 17 2019 May 17, 2019 Friday, May 17, 2019 3:00:00 PM CDT May 17, 2019 in News
VERSAILLES - Graduation at Morgan County R-II High School is Saturday, but not all of the senior class will be... More >>
2 days ago Friday, May 17 2019 May 17, 2019 Friday, May 17, 2019 1:39:00 PM CDT May 17, 2019 in News
COLUMBIA - The Blind Boone Home (10 N Fourth Street) will commemorate John William "Blind" Boone's 155th birthday on Saturday,... More >>
2 days ago Friday, May 17 2019 May 17, 2019 Friday, May 17, 2019 12:39:00 PM CDT May 17, 2019 in News
IONA - The Benton County Sheriff's Office arrested a man suspected of shooting and killing an Iona woman. Around... More >>
2 days ago Friday, May 17 2019 May 17, 2019 Friday, May 17, 2019 12:10:00 PM CDT May 17, 2019 in News
JEFFERSON CITY, Mo. (AP) — Missouri lawmakers have passed legislation limiting the number of young children at in-home child-care providers.... More >>
2 days ago Friday, May 17 2019 May 17, 2019 Friday, May 17, 2019 10:33:00 AM CDT May 17, 2019 in News
COLUMBIA- Two MU students held a practice barista competition today at the Memorial Union location on the campus. The practice... More >>
2 days ago Thursday, May 16 2019 May 16, 2019 Thursday, May 16, 2019 7:30:00 PM CDT May 16, 2019 in News
Columbia, MO
Broken Clouds 69°
2pm 71°
3pm 72°
4pm 73°
5pm 71°