The Missouri Senate approved Senate Bill 509 this week. The measure would require sharp cuts to state services, undermining Missouri’s economy by starving it of the resources it needs to offer quality education from preschool to college, a state of the art infrastructure, and safe, healthy and stable communities. Moreover, the minor tax reduction for low-income households included in the bill pales in comparison to the costs the severe reductions in state services would impose.
The bill would:
- Cut the top individual income tax rate from 6 percent to 5.5 percent;
- Create a new business income deduction of 25 percent for those business that file through the individual income tax structure; and
- Provide a modest increase of $500 to the personal exemption for Missourians with incomes under $20,000 per year.
However, even with this increased exemption, the bill is still skewed to benefit wealthy individuals at the expense of most Missourians.
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