House passes legislation that would update tax brackets
Fri, 28 Feb 2014 03:24:37 GMT —
The Missouri House has passed legislation that could lower taxes for many Missourians by linking the state's tax brackets to inflation.
A bill approved on a 146-4 vote would require Missouri's individual income tax brackets to be adjusted annually for inflation starting in 2015. Legislative staff estimate that would reduce state tax revenues by $26 million when fully in effect.
Although state tax rates have changed over time, Missouri's top income tax bracket has been set at $9,000 since 1931. That means all income over that amount currently is taxed at the same 6 percent rate.
The tax-bracket legislation now goes to the Senate. It's one of several measures lawmakers are considering this year that would reduce state income taxes.