Politics & Finances

Missouri Legislature to Vote on Historic Tax Cuts In Special Session

The Missouri legislature is convening for a special session to vote on historic income tax cuts proposed by Governor Mike Parson.

Yesterday, August 22, 2022, the Governor's office issued an official release regarding the upcoming vote:

The General Assembly will meet in Jefferson City on September 6, 2022, at 12 p.m. to begin consideration of Governor Parson's proposed legislation.

"My team and I have been working with our colleagues in the General Assembly and agriculture partners to formulate a plan to adequately extend our critical agriculture tax credit programs and pass the largest income tax cut in state history," Governor Parson said. "Today, we believe we have that plan and are ready to call legislators back to Jefferson City to get to work on behalf of our farmers, ranchers, and business owners and provide lasting tax relief to every taxpaying Missourian."

Governor Parson's historic tax cut proposal comes as many Missouri residents are facing financial problems as a result of rising inflation and recent flooding in certain areas of the state.

The IRS has provided some tax relief options to those impacted by the floods. 

In regard to the tax cut bill, highlights are:

  • Reducing the top individual income tax rate from 5.3 to 4.8 percent, a nearly 10 percent cut;
  • Increasing the standard deduction for individuals by $2,000 and by $4,000 for married joint filers; and
  • Eliminating the bottom income tax bracket.

In addition to income tax reductions, the bill proposes multiple agricultural tax credits, including new programs for meat processing, biodiesel, and urban farms.

Per mid-Missouri news source, Jefferson City's ABC 17, Democrats have panned the Republican Governor's proposal, specifically citing that the surplus from federal COVID-19 funds will not last forever:

“A cardinal rule of responsible budgeting is don’t use temporary revenue to take on permanent expenses," House Minority Leader Crystal Quade (D-Springfield) said in a statement. "Yet the governor’s plan uses a temporary budget surplus as cover for a permanent loss of revenue that will put Missouri government back into the financial hole it just climbed out of. House Democrats are wary of jeopardizing the state’s financial future for politically motivated tax cuts that, as usual, primarily benefit the wealthy."

Again, the special session will officially convene on September 6, 2022.

Do you think these tax cuts should pass in the Missouri House of Representatives and the Missouri Senate?

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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