The group, named Let Voters Decide, will soon start gathering the roughly 100,000 voter signatures needed to place the initiative on the November 2010 statewide ballot.

Attorney Marc Ellinger, a spokesman for the new group, explained that various versions of an earnings tax measure had previously been submitted for review by the Secretary of State, but only one of them is to be circulated and ultimately headed to the ballot.

“The statutory initiative measure we will pursue does not automatically repeal the existing earnings taxes in St. Louis and Kansas City,” said Ellinger. “It’s designed to give voters in those cities the right to decide for themselves, in local elections, whether they want to continue the earnings tax in their city or phase it out gradually over a period of ten years. The initiative also prohibits any new local earnings taxes in communities that don’t currently have one, so it protects people in the rest of the state from having a local earnings tax imposed in their city or town.”

With regard to St. Louis and Kansas City, Ellinger explained that the initiative requires local “sunset” votes on the existing 1% earnings tax in each city every five years starting in 2011. The tax would continue as long as the majority of voters continue to approve it in those local votes. If, in a future local election, the majority of local voters in St. Louis or Kansas City vote against continuing the earnings tax, it would be phased out in their city gradually, over a period of ten years, at the rate of one-tenth of a percent per year.

Ellinger said the primary initial funding for the Let Voters Decide campaign has been provided by retired Missouri businessman and philanthropist Rex Sinquefield. Travis H. Brown, who heads up the Pelopidas L.L.C., a consulting firm that represents Sinquefield, will serve as Chairman of Let Voters Decide.

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.

“The idea is to put more money back in the pockets of taxpayers who earned it,” [Rep. Scott] Lipke [R-Jackson] said. “Without a doubt it’s going to come back around through sales taxes or income taxes.”

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