The Senate Ways and Means Committee approved legislation that would gradually reduce personal income taxes from 6 percent to 5 percent and allow small business owners a 50 percent deduction from business income reported on individual income tax returns. The tax cuts could begin in 2015, but only if Missouri’s net general revenues rose by $100 million over the high mark from the previous three years.
The bill’s provisions could waive about $900 million of tax revenues annually once fully implemented in 10 years, according to legislative researchers. Gov. Jay Nixon vetoed similar legislation last year and criticized the version passed Thursday. The legislation now will move to the Senate floor for possible debate.