Missouri lawmakers pass income tax cut

4 weeks 1 day 22 hours 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
ROCHEPORT - The Sunny Oaks Charity Horse Show brought about 20 riders out Sunday afternoon to compete for ribbons and... More >>
1 hour ago Sunday, June 17 2018 Jun 17, 2018 Sunday, June 17, 2018 3:36:00 PM CDT June 17, 2018 in News
FULTON - Fulton Police arrived at Westwood Motel at approximately 8:18 PM CT Saturday night to arrest Michael Hook Jr.... More >>
4 hours ago Sunday, June 17 2018 Jun 17, 2018 Sunday, June 17, 2018 12:17:00 PM CDT June 17, 2018 in Top Stories
(CNN) - Twenty people, including a teenager, were injured early Sunday in a shooting at a 24-hour art festival in... More >>
7 hours ago Sunday, June 17 2018 Jun 17, 2018 Sunday, June 17, 2018 9:59:00 AM CDT June 17, 2018 in Top Stories
SPRINGFIELD - A Hickman High School graduate has surrounded herself with Kewpies. The dolls' trademark round eyes watch happily from... More >>
8 hours ago Sunday, June 17 2018 Jun 17, 2018 Sunday, June 17, 2018 8:05:00 AM CDT June 17, 2018 in News
COLUMBIA - Hundreds of people impacted by cancer gathered together on a track Saturday in support of cancer fighters and... More >>
18 hours ago Saturday, June 16 2018 Jun 16, 2018 Saturday, June 16, 2018 10:11:00 PM CDT June 16, 2018 in News
JEFFERSON CITY - A podiatrist with the Jefferson City Medical Group is the first doctor in Missouri to use a... More >>
22 hours ago Saturday, June 16 2018 Jun 16, 2018 Saturday, June 16, 2018 6:42:00 PM CDT June 16, 2018 in News
COLUMBIA - At "Shred Fest," a local skateboarding competition, keeping participants safe was a top concern. An organization provided free... More >>
22 hours ago Saturday, June 16 2018 Jun 16, 2018 Saturday, June 16, 2018 6:18:00 PM CDT June 16, 2018 in News
WASHINGTON, D.C. (CNN) - President Donald Trump suggested Saturday that he is using his administration's separation of families at the... More >>
1 day ago Saturday, June 16 2018 Jun 16, 2018 Saturday, June 16, 2018 3:14:00 PM CDT June 16, 2018 in News
JEFFERSON CITY (AP) — A Jefferson City man who fatally stabbed another man in February 2017 has been sentenced... More >>
1 day ago Saturday, June 16 2018 Jun 16, 2018 Saturday, June 16, 2018 8:03:16 AM CDT June 16, 2018 in Continuous News
KINGSVILLE (AP) — The state has approved a permit to allow a feedlot to expand just three miles from... More >>
1 day ago Saturday, June 16 2018 Jun 16, 2018 Saturday, June 16, 2018 7:54:35 AM CDT June 16, 2018 in Continuous News
KANSAS CITY, Kan. (AP) — A second sheriff's deputy died early Saturday from injuries suffered when an inmate... More >>
1 day ago Saturday, June 16 2018 Jun 16, 2018 Saturday, June 16, 2018 6:45:00 AM CDT June 16, 2018 in News
JEFFERSON CITY - The Juneteenth Heritage Festival is keeping the history of Juneteenth alive in mid-Missouri. Juneteenth is a... More >>
1 day ago Saturday, June 16 2018 Jun 16, 2018 Saturday, June 16, 2018 4:29:00 AM CDT June 16, 2018 in News
BOONE COUNTY - A death, a huge cache of weapons and a suspect who's gun jammed as he was aiming... More >>
1 day ago Friday, June 15 2018 Jun 15, 2018 Friday, June 15, 2018 8:06:00 PM CDT June 15, 2018 in News
COLUMBIA - Boone County's Republican clerk and the Democrat running against him have differing opinions over voter fraud. Challenger... More >>
1 day ago Friday, June 15 2018 Jun 15, 2018 Friday, June 15, 2018 6:59:00 PM CDT June 15, 2018 in News
COLUMBIA - Columbia’s City Channel was recently recognized for creative excellence in production by The Telly Awards Judging Council. Producers... More >>
1 day ago Friday, June 15 2018 Jun 15, 2018 Friday, June 15, 2018 6:43:00 PM CDT June 15, 2018 in News
KANSAS CITY, Kan. (AP) — One Wyandotte County sheriff's deputy is dead and one is in critical condition after... More >>
1 day ago Friday, June 15 2018 Jun 15, 2018 Friday, June 15, 2018 6:04:00 PM CDT June 15, 2018 in News
MILLER COUNTY- Investigators say the human remains they found in Miller County on Monday are from a male from the... More >>
2 days ago Friday, June 15 2018 Jun 15, 2018 Friday, June 15, 2018 4:48:00 PM CDT June 15, 2018 in News
FULTON - The two caregivers responsible for Carl DeBrodie will remain in jail after Judge Kevin Crane denied their bond... More >>
2 days ago Friday, June 15 2018 Jun 15, 2018 Friday, June 15, 2018 3:53:00 PM CDT June 15, 2018 in Top Stories
Columbia, MO
Broken Clouds 94°
5pm 94°
6pm 93°
7pm 92°
8pm 89°