Governor Proposes Exempting First $16,000 from State Taxes

On Friday, Governor Mike Parson proposed his third tax cut since becoming Governor, and the largest tax cut in Missouri’s history.

The proposed tax cut would reduce the individual income tax rate, increase the standard deduction allowance, and simplify the tax code by eliminating income tax brackets. Under the proposal, the first $16,000 of income for single filers, or $36,000 for joint filers would not be taxed at all. The Governor is calling for a special session to pass the permanent tax cut. The proposed tax relief comes during a national 40-year high inflation rate, and skyrocketing Independence Day weekend prices. The Governor’s proposal also vetoes House Bill 2090 which would have included a one time, tax rebate for Missourians making less than $150,000 per year for individual filers, and $300,000 per year for joint filers.