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Thu February 27, 2014
Bill linking tax brackets to inflation passes House
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.