Friday, April 06, 2018
Warrensburg Republican: Senate Bill 617 includes largest tax cut in Missouri history
During my time in the Missouri General Assembly, my colleagues and I have been working to find a reasonable approach to reforming our state’s tax policies. It has been an uphill battle until recently, when the Missouri Senate granted initial approval to Senate Bill 617, a proposal that revises and reforms Missouri’s antiquated tax system. If passed, the bill would include the largest tax cut in the history of Missouri.
The proposal intends to reduce the income tax burden on Missourians by:
· Reducing the corporate income tax rate from 6.25 percent to 4.25 percent,
· Lowering the individual income tax rate to 5.25 percent,
· Gradually increasing the Missouri fuel tax from 17 cents per gallon to 23 cents per gallon. The only states with lower fuel taxes are Alaska and Oklahoma,
· Creates the necessary framework to authorize the state of Missouri to enter into the Streamline Sales and Use Tax Agreement (SSUTA) which will level the playing field for Missouri based brick and mortar businesses,
· Implements the largest funding enhancement for road and bridge repairs since the initial passage of the motor fuel tax in 1994.
The legislation is known as the Missouri Economic Relief Act, a revenue-neutral proposal that adjusts exemptions for individuals and businesses. This proposal reflects recent changes made to the federal tax code and provides an opportunity to reduce the tax burden on hard-working Missourians. I believe it’s time we find ways to put money back into the pockets of individuals and businesses across the state. I look forward to working alongside my colleagues to help advance this bill to the Missouri House of Representatives for further discussion and debate.