Understanding Missouri’s new tax cut
In early May, the Missouri General Assembly overrode a veto by Gov. Jay Nixon to give Missourians their first income tax cut in nearly 100 years. Here are the details of who gets the cut, when it will begin and how small businesses will benefit.
Once fully phased in, the new income tax in Missouri will be 5.5 percent. The state’s current income tax rate is 6 percent.
Who gets this tax cut?
All Missouri taxpayers.
When will the tax cut take effect?
The tax cut is designed to be phased in over five years, with the income tax rate dropping by .1 percent each year. The law specifies that the first cut could happen in 2017. However, the bill also requires that state revenue increase by $150 million before each of the yearly .1 percent drops happen. So, depending on state revenue growth…
View original post 258 more words