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Gov. Parson Signs Off On Missouri's Latest Round Of Tax Cuts

Philip Taylor
/
Creative Commons-Flickr

Missouri Gov. Mike Parson signed legislation Thursday that will cut the state's top individual income tax rate to 5.4 percent next year.

The tax cut comes on the heels of earlier ones passed by Missouri's Republican-led Legislature. Parson signed the bill in Springfield and a news release from his office called it “the largest single year income tax cut in the state’s history.”

Plus, a 2014 law enacted gradual cuts based on state revenue growth. State Treasurer Eric Schmitt said Wednesday that Missouri’s revenue has grown enough to trigger a cut from the current 5.9 percent rate down to 5.8 percent on Jan. 1. That covers the top tax bracket, which applies to most Missouri residents.

“Delivering greater tax relief for hardworking Missourians will result in more jobs, more opportunity and a stronger state economy,” Schmitt, a Republican, said in a statement.

The law passed this session, which was stripped down from a 429-page bill, will bring the rate down 0.4 percent; it’ll gradually go down to 5.1 percent, depending on state revenue growth.

Kansas City Democratic Rep. Jon Carpenter told St. Louis Public Radio earlier this year that he was worried about the financial impact on the state’s budget if Republicans’ estimates that the tax cut would be “revenue neutral” was wrong.

Parson’s office said in an email that House Speaker Pro Tem Elijah Haahr, who sponsored the bill, was at the bill-signing event.

Copyright 2021 KCUR 89.3. To see more, visit KCUR 89.3.

Erica Hunzinger brings several years of editing experience to the politics and education team. Before landing in St. Louis, Erica spent five years on The Associated Press' Central Region desk, handling a wide variety of topics with special emphasis on state government and agriculture and food supply. She also has been a sports copy editor at The News & Observer in Raleigh, North Carolina, and an assistant news editor at The News Journal in Delaware. Erica holds a master's degree in humanities from the University of Chicago (poetry) and bachelor's in journalism from the University of Missouri-Columbia. If you can't find her, try looking at Busch Stadium — or any other ball diamond in the region.
The Associated Press is one of the largest and most trusted sources of independent newsgathering, supplying a steady stream of news to its members, international subscribers and commercial customers. AP is neither privately owned nor government-funded; instead, it's a not-for-profit news cooperative owned by its American newspaper and broadcast members.
Erica Hunzinger
Erica Hunzinger is the editor of Harvest Public Media, based at KCUR.