Missouri lawmakers will return to Jefferson City in the near future with the goal of passing a permanent income tax cut.
Gov. Mike Parson on Friday called for a special session to pass tax relief after vetoing a bill authorizing a one-time, non-refundable income tax credit.
Parson said some of the changes proposed at the special session will include reducing the personal income tax rate and increasing the standard deduction. In addition, the first $16,000 of income for single filers and $32,000 for joint filers would be exempt from state income tax.
Citing high inflation and rising gas prices, Parson spoke of the need for a more concrete solution than the proposed single credit.
“In Missouri, we want to provide permanent tax cuts for permanent relief, not temporary stimulus,” Parson said.
Under legislation passed by lawmakers, some Missourians who paid income taxes this year would automatically qualify for a tax credit equal to the amount they paid up to $500 for individual filers or 1 $000 for those filing jointly. There was an income cap of $150,000 for individuals or $300,000 for couples.
But Parson vetoed the credit and the $500 million allocated in the budget to pay for the credits. He said many Missourians would have received less than their due or even no relief.
“Because of the underfunding of the temporary program, some Missourians would have received between $100 and $200, while many others would have received nothing,” Parson said.
In addition to passing a tax cut in the special session, Parson wants lawmakers to extend the expiration date of some farm tax credits the legislature passed this session.
The original bill had an expiry date of two years. Parson vetoed the bill, saying the term was too short and instead advocates a minimum expiration date of six years.
“Business owners and producers often need a minimum of 24 months to secure the equity and private investment needed for projects, not to mention the additional years needed to bring projects to fruition,” Parson said.
The governor expressed frustration that the legislature passed longer extensions for other programs, while only offering a two-year extension for agriculture.
“Agriculture in Missouri is the primary economic driver. It’s only right that we provide Missouri farmers and ranch families with the backbone of the economy with the same opportunities provided in these other programs,” Parson said.
No date for the special session has been set, but Parson said he hopes the tax cut will be in place by January 1.
In addition to two more vetoes, Parson signed eight more bills into law, completing his work for that year’s general session.
Bills signed Friday include establishing a list of rights for sexual assault survivors in the state, creating a reading intervention program in schools and establishing a curriculum daycare in prison.
Not counting signing a record operating budget of $47.5 billion, Parson signed 37 laws into law.
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