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.
