JEFFERSON CITY — State Sen. Lincoln Hough, R-Springfield, has introduced legislation to create the largest tax cut in Missouri history.
“My proposal has one intention: to help hard-working Missourians keep more of their hard earned money,” Sen. Hough said. “This legislation would be the largest single tax cut in state history, guaranteeing Missouri taxpayers keep more of what they earn. With this effort, we will ensure Missouri families have more money to spend on their families, in our communities, growing local economies.”
Senator Hough’s Senate Bill 627 would reduce the state income tax by .5 percent, starting in 2022. It is believed the individual income tax rate in 2022 will be 5.3 percent. The Hough tax cut proposal would reduce the rate from 5.3 to 4.8 percent, starting in 2022.
Senator Hough’s tax cut proposal would make Missouri more competitive in terms of tax rates, when compared to surrounding states. For instance, the individual income tax rate in Iowa is 8.53 percent, 4.95 percent in Illinois, 5 percent in Kentucky, 5.9 percent in Arkansas, 5 percent in Oklahoma, 5.7 percent in Kansas and 6.84 percent in Nebraska. There is no Individual Income tax in Tennessee.
“Missouri should be returning the people’s money,” said Sen. Hough. “Due to the pandemic, the U.S. House of Representatives and U.S. Senate are working on a multi-trillion dollar spending bill, the American Rescue Plan, which is poised to send billions of dollars to states and municipalities. This money should be returned to the taxpayers. It’s their money and they should get to decide what’s best for themselves and their families.”
To learn more about Sen. Hough and his legislation, please visit senate.mo.gov/hough.