BY Rex Sinquefield
True state-based, political leadership can be hard to find these days. Fortunately, in my home state of Missouri, history is being made that indicates a renewed, fiscally responsible approach to growth. Unfortunately, some are disparaging those steps forward with ill-informed positions.
The stage for this debate was set two years ago when both house chambers showed extraordinary leadership and vision by passing historic income tax reform and then overriding then Gov. Jay Nixon’s veto of the legislation. Senate Bill 509 proved to be the state’s most significant tax reform measure in nearly a century.
The new law set into motion business and personal income tax reductions once the state successfully met specific general revenue gains. Missouri exceeded that level in fiscal year 2017 and hardworking Missourians stand to benefit in the following ways:
- Top personal income tax rates will be reduced .1% each year after net gross revenue collections meet or exceed the $150 million mark until the rate is reduced from 6% to 5.5%.
- Small business income that is filed through individual tax returns will see a 25% deduction phased in over five years after net gross revenue collections meet or exceed the $150 million mark.
- Missourians with an adjusted gross income of less than $20,000 will be able to claim an additional $500 annual tax deduction.
- Taxable income brackets will be adjusted for inflation.
State Treasurer Eric Schmitt, who supported the legislation when he was a state senator, had thisto say about the reforms: “Small businesses, which represent 97% of Missouri businesses, have struggled for years to stay open in the midst of burdensome regulation and excessive taxation. By finding new ways to provide relief to those businesses and letting Missourians keep more of their hard-earned money, we can significantly strengthen our economy. For middle class families, tax relief means greater financial empowerment, higher take-home pay and flexibility to address immediate needs.”
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