JEFFERSON CITY, Mo. – A number of groups and individuals across the state are still wary about the tax reform legislation being debated by the nation’s lawmakers, for a variety of reasons.
The Public School and Education Employee Retirement Systems of Missouri (PSRS/PEERS) is one such group, and they have now penned a letter expressing their concerns to Missouri senators and congressman.
Their issue with the proposed federal tax reform legislation lies in with a provision in Section 5001 of the Tax Cuts and Jobs Act (HR 1), which could subject certain investments of state and local government pension plans to the unrelated business income tax (UBIT).
State agencies are exempt from taxation, and they contend that the application of that section to public pension plans would erode the immunity. They believe it would set a dangerous precedent for the taxation of state entities, as well as increasing costs to Missouri taxpayers.
You can read the full letter below:
Benjamin Peters is a reporter for the Missouri Times and Missouri Times Magazine, and also produces the #MoLeg Podcast. He joined the Missouri Times in 2016 after working as a sports editor and TV news producer in mid-Missouri. Benjamin is a graduate of Missouri State University in Springfield. To contact Benjamin, email email@example.com or follow him on Twitter @BenjaminDPeters.