“My proposal has one intention: to help hard-working Missourians keep more of their hard-earned money,” Hough said in a statement. “This legislation would be the largest single tax cut in state history, guaranteeing Missouri taxpayers keep more of what they earn. With this effort, we will ensure Missouri families have more money to spend on their families, in our communities, growing local economies.”
Hough’s SB 627 would reduce the top rate of income tax in Missouri by nearly half a percent, lowering the tax rate from an expected 5.3 to 4.8 percent beginning in 2022. Hough pointed to legislative efforts on Capitol Hill as a catalyst for his proposal.
“Missouri should be returning the people’s money,” Hough said. “Due to the pandemic, the U.S. House of Representatives and U.S. Senate are working on a multi-trillion-dollar spending bill, the American Rescue Plan, which is poised to send billions of dollars to states and municipalities. This money should be returned to the taxpayers. It’s their money and they should get to decide what’s best for themselves and their families.”
The proposal would also put Missouri in competition with other nearby states. Kentucky and Oklahoma currently sit at a 5 percent individual income tax rate, while Illinois imposes a rate of 4.95 percent; Arkansas and Kansas sit just below 6 percent, Nebraska taxes at 6.84 percent, and Iowa sits at 8.53 percent.
Gov. Mike Parson signed a tax cut into law in 2018, lowering income taxes from 5.9 percent to their current rate. Attorney General Eric Schmitt sponsored the first income tax cut in a century during his tenure in the Senate in 2014.
The bill was proposed Monday, the final day for legislators to file legislation. The bill has not yet been assigned to a committee.
This story has been updated.