AP: Missouri House endorses cutting state income taxes
Forbes.com featured an AP article today about the Missouri House endorsing the removal of the state income tax. Here is an excerpt:
Missouri House endorses cutting state income taxes
By LEE LOGAN , 04.23.09, 11:42 AM EDT
The Missouri House has endorsed a proposed income tax cut that could total hundreds of millions of dollars.
The legislation lowers the top income tax rate for middle-income earners, increases the deduction for people with children and raises the maximum amount of federal taxes that can be deducted on a Missouri return.
The House gave the bill first-round approval Wednesday on a voice vote. It needs another vote to move to the Senate. There are about three weeks left in the legislative session.
Currently, Missouri income more than $9,000 is taxed at a 6 percent rate. The legislation reduces the rate by one-half percentage point for people with incomes up to $50,000. Incomes higher than that ceiling would still be taxed at 6 percent.
The legislation also would allow people to further reduce the amount of their income that is taxable. It would increase Missouri’s current $1,200 deduction per child to $1,600.
Taxpayers also would be able to deduct more of their federal income taxes from their Missouri taxable income. Single taxpayers could deduct up to $7,500 in federal taxes rather than the current $5,000. Married taxpayers could deduct $15,000 instead of the current $10,000 in federal taxes.
For the full article visit:http://www.forbes.com/feeds/ap/2009/04/23/ap6329678.html