Income Taxes

The governor's office cited some unexpected budget items, and a recently passed bill eliminating Missouri's capital gains tax, as reasons for reducing spending. His largest veto was over $1 billion for a road construction program.

The Republican-led legislature is considering changing or repealing some voter-approved measures, including abortion legalization and the minimum wage hike. Lawmakers also need to pass a budget, which may look much smaller than previous years.

Missouri Republicans are enthusiastic about President Donald Trump’s second term. But they acknowledge that his first months in office haven’t been without hiccups. Plus: A Kansas bill would eliminate state income taxes on tips for workers like food servers.

One bill would set the state income tax to a flat rate of 4.7%, with the ability to reduce it to 3.7% over the next decade, and would also reduce the corporate income tax rate.

A bill in Kansas would eliminate state income taxes on tips for workers like food servers. But the idea’s fate in the state likely hinges on whether Congress acts.

With plans to beef up funding for law enforcement and have the state take over control of the police department in St. Louis, Kehoe hopes to make public safety the cornerstone of his administration. He's also promised to eliminate the income tax.

Kehoe highlighted a number of new budget items that seek to reduce the state’s crime rate, including a new state crime lab and more money for local departments. He also reiterated his support for a state board overseeing St. Louis Police, taking away local control from the city.

Kehoe said one of his priorities for cutting taxes this year is to exempt capital gains — the profits from sale of investments like a business or stocks. But doing that would reduce Missouri's revenue by about $300 million annually.

More than 1,000 bills have been introduced in the Missouri General Assembly this session, but only a few will get passed and signed by Gov. Mike Kehoe. Housing, taxes and right-to-work proposals are all on the table.

Long was one of the first elected officials to publicly support Trump. When most considered Trump’s candidacy a joke, Long touted Trump to foreign leaders and GOP insiders who snickered at the notion that the real estate mogul and reality TV star would be the next president.

Democratic Gov. Laura Kelly said she will sign the bipartisan compromise to cut Kansas income and property taxes, as well as eliminate taxes on Social Security benefits.

Ahead of Tuesday's special legislative session, the deal between Democratic Gov. Laura Kelly and the GOP leaders of the Kansas Senate and House would collapse the personal income tax structure to a two-rate system. Kelly previously vetoed a single-tier flat tax plan, calling it too expensive.