The Missouri House on Thursday abandoned its plans cut corporate taxes after Gov. Mike Parson announced his opposition to the move.

Instead, put a Tax cut plan passed by the Senate vote, but not before a Democrat called “shenanigans” as the move blocked attempts to propose an amendment.

By a vote of 98-32, the Senate sent the bill to Parson, who praised it as “a real tax relief for Missourians.”

Parson also published a modified special meeting call to align the schedule with the bill when passed.

The passage of the tax bill means that the legislature has completed one of the two tasks that Parson set in his agenda. The Senate will take up this bill passed in the House of Representatives next week, which provides tax revenue and other incentives for economic projects in rural areas.

“We called this special session to pass and extend important support to the agriculture industry and lower income taxes for Missourians, and that’s exactly what we did,” Parson said in a prepared statement.

When Parson called the special meeting in August, he asked lawmakers to cut the top tax rate to 4.8% from the current 5.3%.

The bill heading to his desk would cut the top rate to 4.95% immediately and, if revenue growth meets the target, would lower the rate to 4.5% in four additional steps. .

We called this special session to pass and extend important support for the agricultural industry and lower income taxes for Missourians, and that’s exactly what we did.

The call for a new special session indicates that the bill, when fully implemented, will reduce general revenue by $764 million annually. The fund as a whole earned $12.9 billion in the fiscal year that ended June 30. The year ended with a surplus of nearly $5 billion.

As the debate opened on Thursday, Democrats prepared several amendments. They want to provide student loans, property tax relief for seniors and make low-income family loans repayable, meaning they’ll get a check. if the debt exceeds his liability.

But when Republicans removed a version of the bill that the House Budget Committee had modified to include corporate taxes in consideration, the amendments became moot. those. Democrats have accused Republicans of blocking proposals to help working families because they don’t want to be forced to vote against them.

Although they opposed the corporate tax cuts, Democrats complained that removing the bill would mean other measures, including one that would eliminate part of the sales tax on tampons. and other health products.

“It’s frustrating sometimes when you feel like you’re really bringing home results, not just in my district but in many other districts across the state, and then you see the shenanigans that have happened, the deletions just everything,” said Rep. Rasheen Aldridge, D-St. Louis.

The tax cuts will take effect beginning in 2023. The exact date is unknown because the new law takes effect 90 days after the end of the session and the Legislature defeated a provision that would have made it signed by Parson.

Debate on the House floor focused on whether the bill would provide enough relief for Missourians facing rising costs and higher tax bills.

The sponsor, House Budget Chairman Cody Smith, said the bill would help.

“This is for those who pay the bills,” Smith said.

Tax cuts will help everyone, he added.

“People who support this bill understand that lower taxes lead to economic growth,” Smith said.

This is the definition of irresponsible.

-Rep. Peter Merideth, D-St. Louis

But Democrats, and at least one Republican, say the bill doesn’t target the people hardest hit by rising costs.

State Rep. Peter Merideth, D-St. Louis, said the bill would make it harder to pay for schools, raise public employee wages or find people to work in state prisons and mental health hospitals.

“This is the definition of irresponsibility,” Merideth said.

In testimony to the House Budget Committee, Jeremy LaFaver of the Missouri Budget Project estimated that the bottom 20% of investors would save about $3 a year and the top 1%, with an average of $1.5 million, will save more than $15,000 a year.

The Rep. Republican Bill Kidd of Buckner asked his colleagues to provide aid to poor Missourians and seniors in the 2023 legislative session.

“Please do something that will affect real people,” Kidd said, adding, “If you’re in the $100,000 to $200,000 range, you’re going to love this tax cut. But if If you are a poor person or someone with a fixed income, this is not appropriate.

In a statement released after the Senate vote, Sen. Lincoln Hough, R-Springfield, said he was pleased the Senate passed the bill he sponsored in the Senate without made changes.

“In addition to immediately alleviating the burden of near-term inflation and providing the largest income tax cut in state history, this legislation establishes a fiscally responsible plan that will continue to provide tax relief to hard-working Missourians for years to come,” Hough said. .



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