As the 2019 tax season comes to a close, two key facts have emerged:Incomes are Up, and Taxes are Down Since the passage of President Trump’s Tax Cuts and Jobs Act (TCJA) and the adoption the largest single year income tax cut authored by Speaker Elijah Haahr, Missouri has demonstrated strong economic growth, delivered real savings, and created more job opportunities for hard-working individuals and families.
Since January 2017, Missouri’s unemployment rate has fallen 1.2 percent and has remained near historical lows, currently at 3.3 percent, the lowest level since 2000. Also, Missouri’s employment levels have recently reached all-time highs, topping a total of 2.9 million jobs.
“Thanks to President Trump and Republican pro-growth policies, more Missourians are going back to work, seeing an increase in take-home pay, and keeping more of their hard-earned money,” said Governor Mike Parson. “Missouri conservatives have long championed the fundamental principle of reducing the tax burden for individuals of all incomes, and it’s encouraging to see the immediate results of these pro-growth policies; incomes are up and taxes are down.”
Approximately 3 million people file a Missouri state income tax return each year. As of Monday, April 29, nearly 2 million taxpayers had filed original returns with the same filing status in tax year 2018 as they did in tax year 2017.
In terms of take-home pay, 64 percent of taxpayers in the sample saw an increase, bringing home $6 billion, or 5 percent, more than last year. Fifty-one percent of taxpayers in the sample saw a decrease in their effective tax rate
“As we said from the beginning, the focus of tax reform was always about expanding opportunity and making sure hardworking Missourians could keep more of what they earn,” said Senator Blunt. “The Tax Cuts and Jobs Act has helped fuel the strongest economic growth we’ve seen in more than a decade. We now have an economy where people feel more secure in the job they have and more optimistic about the opportunities they’ll have in the future. We’re on the right track and we’ll keep moving forward on pro-growth policies that will allow our state, and our country, to continue leading in a global economy.”
The increase in take-home pay because of Republican tax cuts is having a positive impact on local economies. In the first 12 months following passage of the Tax Cuts and Jobs Act, sales and use tax revenue increased by nearly 2.5 percent. That means more money going into small businesses that drive job growth.
“We cannot lose sight of the fact that Missouri incomes rose 5 percent over the past year, that Missourians paid less in taxes, and that Missouri unemployment continues to drop,” said Treasurer Scott Fitzpatrick. “This pro-growth agenda is working for Missouri families, farmers, and business owners who now get to keep more of what they earn.”
“My Senate colleagues have worked incredibly hard to keep taxes low for every Missourian. Our pro-growth policies and balanced budgets, paired with the President’s tax cuts, are delivering real results for Missouri families: higher incomes, lower taxes, and record employment,” said Senate President Pro-Tem Dave Schatz. “And as we wrap up the final weeks of the legislative session, Missourians will see us use that growth to make record investments in our schools, infrastructure, and public safety.”
Speaker of the House Elijah Haahr added, “Missouri families are the clear winners from the General Assembly’s efforts last year to pass historic tax cuts, so they keep more of their own money. Businesses across the state are investing in their workforce, adding new jobs, and boosting individual incomes. Today’s economic data is proof that reducing the overall tax burden on Missourians has provided opportunities for Missourians that has fostered an economic surge for the state.”
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