Missouri House approves income tax cut
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.