This week, I presented my Senate Bill 25 creating a Missouri Child Tax Credit, to the Senate Ways & Means Committee. This is a middle-class tax cut that would allow Missouri families to claim a credit of between $200-$300 for each child on their state tax return. There are certain income guidelines to receive the credit and it would be non-transferable, non-refundable, and only available to Missouri residents.
The idea behind the child tax credit is that it helps middle class families offset the cost of raising children. According to the U.S. Department of Agriculture, to raise a child born in 2013 to the age of 18, it will cost a middle-income family just over $245,000. That's up $4,260 from 2012. Raising children is becoming more and more expensive and, at the same time, total tax liability has increased. We need to lower the tax burden for families and give them the opportunity to keep more of their own money which will lead to greater investment in our economy and their children’s future. A child tax credit also encourages Missourians to work hard, go as far and high as their work ethic and talent will take them, and doesn’t penalize them for making more money and providing for their families. Lifting a families’ income, especially when a child is young, not only tends to improve a child’s immediate well-being, but is associated with better health, better education, more hours worked, and higher earnings in adulthood.
About 623,000 taxpayers would qualify for this child tax credit and would cover approximately 1.1 million qualifying children. Currently, a married couple with two children making $40,000 pays approximately $2,200 in Missouri taxes. Under my bill, this family would receive a $600 tax cut which is a 27% reduction in their tax liability. This is a meaningful tax cut and would have a huge positive impact on middle class and working Missourians. My bill has strong bipartisan support in committee and I look forward to the full Senate debating it in the coming weeks.
I am also continuing my efforts to strengthen our beef industry by giving our cattle farmers more control over the Missouri Beef Checkoff and how we market beef in our state. Right now, $1 of every head of cattle sold in the state goes to the Checkoff program; 50 cents goes towards the national Cattlemen's Beef Promotion and Research Board; and 50 cents remains in state to promote Missouri beef. These funds have gone towards the immensely successful national “Beef – It’s What’s For Dinner” campaign, funding for the Beef Showcase at the Missouri State Fair and generating classroom materials for 90 percent of Missouri’s school districts. Under current state law, Missouri’s Beef Checkoff cannot exceed the federal Checkoff. This means our cattle producers cannot lower or raise the Checkoff to meet the needs of the industry. My Senate Bill 208 simply repeals this provision and allows producers to vote on how they want to structure their own Checkoff.
Any changes to the Checkoff would have to be approved by a majority of cattle farmers and producers could still get a refund if they make a request to the Missouri Department of Agriculture. Promoting Missouri beef is increasingly important as new foreign producers are entering the U.S. market and the number of producers domestically continues to decrease. The bottom line is we have a strong agricultural tradition and if we want Missouri to continue to be a leader in cattle production, our cattle farmers should have a say on how they market their products. SB 208 was heard in the Senate Agriculture Committee last week and is awaiting a vote before moving to the to the full Senate for debate.
As always, I welcome your ideas, questions and concerns about Missouri government. You may contact me at the State Capitol as follows: (573) 751-1480, david.sater@senate.mo.gov or by writing to Sen. David Sater, Missouri State Capitol, Room 419, Jefferson City, MO 65101.
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