Missouri senators on Tuesday passed a stripped-down tax bill that would cut the individual income tax rate from 5.9 percent to 5.5 percent starting next year, moving the Republican-helmed Legislature a step closer to passing tax changes before legislative session ends Friday.
Under the Senate version, individuals' income tax rate would gradually drop to 5.1 percent if the state meets revenue targets. To offset the loss in revenue, senators proposed reducing a federal income tax deduction. The proposal passed the Senate 24-9.
The version includes far fewer tax changes than a proposal approved by House members last month, which also would have cut the corporate tax rate from its current 6.25 percent to 5 percent.
The earlier, House-approved version of the proposal also had included an earned income tax credit for low-income workers and a hike in vehicle fees. It would have changed how some multistate corporations can calculate their taxable income, and it would have eliminated a tax credit for low-income senior renters.