Missouri Gov. Eric Greitens and Republican lawmakers are angling for tax cuts during this year’s legislative session. It’s a policy push that the GOP officials believe will make the state more attractive to businesses and potential residents.
But with the state facing yet another tough budgetary year, members of both parties worry that cutting taxes will deprive Missouri of revenue needed to fund basic state services. Some fear that Missouri is marching in the same direction as Kansas, where tax cuts have been criticized for hurting the state.
Both Greitens and GOP lawmakers are pairing reductions in taxes with paring down popular tax breaks. In fact, Democrats have been advocating for some aspects of Greitens’ proposal for years. But whether lawmakers can get something to the governor’s desk before May is uncertain.
Questions over size of cut
A day after trumpeting his new $800 million tax cut plan, Gov. Eric Greitens’ administration released a document showing the tax cut as hundreds of millions of dollars less.
But, administration officials say the analysis compiled by Greitens’ tax agency doesn’t show the full extent of the tax cuts and the money that would be raised to offset the proposal.
An analysis by the Missouri Department of Revenue showed a total cut at an estimated $374.6 million, with most of the savings coming from a $210.7 million reduction in the individual income tax by dropping the tax rate for most filers to 5.3 percent, down from the current level of 5.9 percent.