MO Governor calls for tax cut, ag tax credit extension
Governor Mike Parson is calling for the largest state income tax cut in Missouri’s history during the state’s likely upcoming special legislative session.
The Governor is traveling across the state discussing the tax cut need – meeting with Representatives Kent Haden, Chad Perkins, and Tim Taylor on Tuesday.
Haden tells Brownfield the proposed state income tax cut of 4.8 percent has already been approved to take place over the next four years, but…
“This would take it to that rate immediately,” he said. “And, really, we’ve already voted to take it to that rate over a period of time with some triggers. This says, ‘hey, our economic situation is good enough to go ahead do that before we hit the triggers’.”
Haden said Parson believes about $780 million is available to provide an adequate ‘cushion’ and cover unexpected expenses, allowing for the tax cut to take place sooner rather than later.
Parson said the permanent tax cut would provide Missouri farmers and ranchers with the same opportunities as other industries while supporting small businesses.
The special session would also look to extend tax credits for biofuels manufactures, meat packers and young farmers. Parson vetoed a two-year extension to the tax credits in July saying a full six-year extension under the Missouri Agriculture and Small Business Development Authority is needed.
Haden said the ag tax credits would provide a boost to farmers in what’s been a difficult year.
“Almost all of our ag omnibus ag bill tax credits have given, at least, a two and a half up to a seven to one return,” he said. “So, almost all of these are proven programs that are important to our ag producers.”
Haden said the state legislature has the opportunity to overturn Parson’s veto of the two-year credit extension if a full extension fails during the special session.
“But, the two year [extension] is not very workable from a management standpoint for the producer, for the bankers, or really for the Department of Ag overseeing it,” he said.
The date for the special session isn’t set yet, but Haden expects it to take place the first week of September.