Lower than expected growth means no Missouri income tax cut next year

Missouri’s first tax cut in nearly a century appears to be on hold for at least a year.

With the end of the fiscal year striking at midnight last Thursday, an early review of the numbers shows state revenue growth failing to hit the required threshold for the income tax cuts to go into effect as planned in 2017.

According to an end-of-year revenue report, total revenue growth in the fiscal year was just $77 million, far less than the required $150 million, delaying implementation of the tax cut for at least one year.

Under the tax cut plan, the state’s top personal income tax rate would drop to 5.5 percent from its current 6 percent over the next five years. There also would be a new 25 percent deduction on business income reported on individual returns and an update to the state’s tax brackets, which haven’t been changed since 1931.

Read more: St. Louis Post-Dispatch


Leave a Reply

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students