JEFFERSON CITY — Sen. John Lamping, R-Ladue, filed legislation today (1-10) that would reduce the amount of state income tax Missouri residents pay by $128 million.

 Senate Bill 638 proposes a tax cut for all Missouri filers.  The measure would completely eliminate the first two tax brackets, thereby preventing anyone who earns less than $2,000 from paying state income tax. 

“This reduction of Missouri state income taxes signals to taxpayers that we are doing everything we can during these tough economic times to ensure they keep as much of the money they earn as possible,” Sen. Lamping said.   

The proposed legislation is revenue neutral, as a corresponding one-time $0.26 increase to the cigarette tax would be used to offset the cost of the income tax reduction.  The increase would mean each pack of cigarettes would be taxed at $0.43, which would move Missouri from having the lowest cigarette taxes in the nation to being one of the six states with the lowest cigarette taxes in the country.  The national average of cigarette taxes per pack is currently $1.46.   

To read more about this measure or other legislation sponsored and co-sponsored by Sen. Lamping, please visit www.senate.mo.gov/lamping.