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Missouri House approves income tax cut

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By AP/KWMU

Jefferson City, Mo. – The Missouri House has endorsed a major income tax cut.

The legislation lowers the top income tax rate for those making up to $50,000, increases the deduction for people with children and raises the maximum amount of federal taxes that can be deducted on Missouri's return.

The House gave the bill first-round approval Wednesday. It needs another vote to move to the Senate.

A fiscal analysis by legislative staff shows the cuts could cost the state $360 million each year.

But House Republican Scott Lipke says his bill's actual cost is about $180 million.

Lipke argues the bill would stimulate the economy, but Democrats say it's imprudent to cut taxes by so much in a lean budget year.

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