With the clock winding down on their legislative session, Missouri lawmakers on Thursday approved a reduction to the state’s income tax rate for individuals and made headway on a plan to cut the rate for businesses.
The House voted Thursday night to again cut individual income taxes, sending the bill to the governor’s desk. The plan would reduce the state’s income tax on individuals from 5.9 percent to 5.1 percent by 2023 if revenue targets are met.
The bill, sponsored by House Speaker Pro Tem Elijah Haahr, R-Springfield, would phase out a federal income tax deduction to offset losses in revenue. However, some Democrats expressed concern about revenue estimates.
Also Thursday, the Senate worked late to pass a bill that would cut the state’s corporate tax rate to 4 percent, down from 6.25 percent, starting in 2020. The plan still needs House approval.
The bill’s sponsor, Sen. Andrew Koenig, R-Manchester, said revenue reductions would be offset by changes in how companies calculate and pay taxes.