This bill was passed by the Senate and the House. It was delivered to the Governor on April 16th. On May the 1st, the Governor vetoed the bill. After the Senate voted to override the veto on May 5th, the House voted to override the veto on May 6th, Missouri workers and businesses had the first reductions in rate in the history of the State.
Major provisions of the law.
The act creates an individual income tax deduction for business income and phases it in over a period of years, beginning in 2017.
Brackets for individual income tax be adjusted annually for the percent increase in inflation.
No reduction will go into effect unless the net general revenue collected in the previous fiscal year exceeded the amount of net general revenue in any one of the three fiscal years prior to such year by at least $150 million.
(On a similar tax reduction bill in the House that had revenue trigger amounts, I was able to add an amendment that would exclude any tax revenue derived from a tax amnesty bill from being included in the revenue trigger amounts. Talking to the Senator that sponsored the bill, I explained the amendment. A one shot increase in revenue from an amnesty tax program should not be included in the trigger amount. I did not file the amendment for 2 reasons. One, I knew I would not be called on and if the amendment was added, the bill would go back to the Senate to be voted or sent to conference. Neither a good thing.)
Increases the exemption amount by $500 for individuals with a Missouri adjusted gross income of less than $20,000.
Now my reasons for voting to override the Governor’s veto. It is a true income tax reduction for small business. There are no hoops to jump through, if a small business works hard, makes money they will be able to keep more of that money. Most good small businesses in the way they are taxed do not put all that extra money in their personal pocket, but leave it in the business so they can grow. Good, sound, growing small businesses are great for the community. More payroll. More property taxes for schools and services. Local money, less dependent on the State and Federal Government. This is a win-win to me.