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Richardson: No reason to decouple Missouri’s tax code

JEFFERSON CITY, Mo — The Missouri Republicans kicked off the legislative session in typical fashion, with taxes being a point of discussion.

In an press availability on Wednesday, House Speaker Todd Richardson stated Missouri’s taxes should not be decoupled from the federal code.

Missouri is one of several states that links federal income tax changes to the states tax code.

Richardson’s stance falls in line with the state treasurer’s.

“By nearly doubling the standard deduction we can provide more tax relief to hardworking Missourians from all walks of life,” Eric Schmitt said in a news release in December

Richardson stated that he saw no reason to decouple and “reduce the tax cut for Missourians.”

President Donald Trump signed into law just before Christmas a significant overhaul of the federal tax code. The plan includes the near doubling the standard income deduction. Under the Tax Cuts and Jobs Act the standard deduction will increase from $6,500 to $12,000 for individuals and from $13,000 to $24,000 for couples.

Since Missouri’s code is linked with the federal code, the state’s standard deduction will also significantly increase. This move would decrease state revenue, though by how much is still up for debate.

Missouri Department of Revenue Director Joel Walters projected the loss of revenue at less than $100 million and Richardson described the federal tax cut as “a manageable hit” to the state budget.