|
SS#3/SCS/SBs 509 & 496 - This act modifies the individual income tax rate table. The maximum tax rate on personal income will be reduced by one-half of a percent over a period of years, beginning in 2017. Each reduction to the rate will be by one-tenth of a percent. No reduction will go into effect unless the net general revenue collected in the previous fiscal year exceeded the amount of net general revenue in any one of the three fiscal years prior to such year by at least $150 million. Once fully phased in, the top rate of tax on individual income will be five and one-half percent. This act requires the brackets for individual income tax be adjusted annually for the percent increase in inflation. (Sections 143.011 & 143.021) The act creates an individual income tax deduction for business income and phases it in over a period of years, beginning in 2017. Each increase to the deduction amount will be by five percent. Once fully phased-in, taxpayers will be allowed to deduct twenty-five percent of their business income. No increase to the deduction will go into effect unless the net general revenue collected in the previous fiscal year exceeded the amount of net general revenue in any one of the three fiscal years prior to such year by at least $150 million. Shareholders of S corporations and partners in partnerships will be allowed a proportional deduction based their share of ownership. (Section 143.022) Currently, there is a personal exemption amount of $2,100 for personal income taxes. This act increases the exemption amount by $500 for individuals with a Missouri adjusted gross income of less than $20,000. (Section 143.151) The business income deduction provisions are similar to SB 11 (2013), SB 26 (2013), HB 536 (2013), and SB 661 (2012). The provision requiring income tax brackets be adjusted for inflation is similar in concept to SB 772 (2014) and HB 1268 (2014). The business income deduction provision is similar to a provision in HB 1453 (2014), HB 2073 (2014), HB 2290 (2014), SCS/HB 1295 (2014), SB 858 (2014), SB 11 (2013), SB 26 (2013), HB 536 (2013), and SB 661 (2012). MIKE HAMMANN
|