JEFFERSON CITY — Today (1-23), the Missouri Senate Committee on Ways and Means passed Senate Committee Substitute for Senate Bills 509 & 496, which would provide a tax cut to individuals and small businesses that file using personal income tax forms. Senate Bill 496 was combined with the lead bill, SB 509, which passed with a vote of 7-2, with one senator voting “present.”
“I am glad we moved forward with this tax cut for the people,” said Sen. Kraus. “Each portion of SB 509 & 496 was designed to affect Missouri residents and small business owners who are taxpayers. Just last month, the General Assembly voted for a $1.7 billion tax break for one company. It’s time we gave the same attention to the people of Missouri.”
SCS SB 509 & 496 introduces a one-point reduction in personal income taxes, from 6 percent to 5 percent, over a 10-year period. The bill also grants a 50 percent deduction for small business owners who pass their proceeds through to their personal tax form, phased in over five years. The bill specifically helps lower income Missourians by giving an additional $1,000 deduction to those who earn less than $20,000 adjusted gross income. The personal and small business cuts won’t take effect until certain revenue gains have been met.
“This is different than last year’s bills in that it only addresses taxes paid by individuals,” said Sen. Kraus. “We have removed the corporate tax cuts and all changes related to state and federal Internet tax solutions.”
The personal and small business cuts in SCS SB 509 & 496 won’t take effect until Missouri’s revenues grow by at least $100 million each year.
“SB 509 & 496 is designed to take no money from existing programs, including education. Instead, it takes a portion of future revenue growth and returns it to Missouri residents. In other states, similar reasonable cuts have led to higher overall state revenues.”
SCS SB 509 & 496 will now go to the Senate floor for possible future debate.
For more information on this measure or any of Sen. Kraus’ sponsored legislation, please visit www.senate.mo.gov/kraus. |
