Governor Mike Parson Signs Income Tax Cut for Missourians
JULY 12, 2018
Springfield — Governor Mike Parson visited Springfield, MO on Thursday to sign an income tax cut bill that will allow Missouri families to keep more of their paychecks. This new tax cut will boost Missouri’s economy with reforms to both the individual income tax and the state’s business tax.
The signing took place at Hartman & Company’s Shop Location and notable attendees included House Speaker Pro Tem Elijah Haahr, who sponsored the legislation; Senator Bill Eigel, who handled the legislation in the Missouri Senate; Marybeth Hartman, the Executive Vice President of Hartman & Company; and other area lawmakers.
Now that Governor Parson has signed HB 2540, Missourians will be provided with the largest single year income tax cut in the state’s history. Missouri State Treasurer, Eric Schmitt, confirmed yesterday that state revenue growth triggered an income tax cut from 5.9 percent to 5.8 percent. HB 2540 will further reduce the individual income tax rate by four-tenths of a percent from 5.8 percent to 5.4 percent starting in 2019. Additional triggers in the bill would lower the individual tax income rate to 5.1 percent, making Missouri the 14th lowest income tax state in the country.
“This is the first step in an ongoing process,” said Governor Parson. “We need to continue to make the Missouri tax code simple and fair. This is only the beginning of our plan to keep more money in the pockets of Missourians and Missouri small businesses. I look forward to working with the legislature long term to identify ways to continue to offer broad based tax relief. I commend Rep. Haahr and the General Assembly for their efforts to reduce the tax burden on Missouri families.”
"From growing families to the greatest generation, from entrepreneurs to empty nesters, Missourians will pay lower taxes under this proposal,” said Haahr, R-Springfield. “This is a big step forward in modernizing our tax policy and making Missouri a more competitive state for individuals and businesses.”
Tax reform was a significant priority for Missouri lawmakers during the 2018 Legislative Session. Governor Parson sees this as a first step to long-term tax reform that will benefit Missouri citizens and businesses alike.