SB 509 - Why, What, When and How?

SB 509, a five-page bill that offers tax relief for ALL Missouri citizens, is a culmination of three months of work and vetting by the General Assembly and Governor Nixon.

WHY?

Keeping more money in the pockets of individual taxpayers grows the economy.

Keeping more money in our small businesses grows the economy and creates jobs. Over 90% of the employers in our state are small businesses.

Keeping more money in the pockets of low income citizens is the right decision.

Other Midwest states either do not tax income or have recently reduced taxes; therefore, Missouri is unable to compete. Eighteen states have passed tax reform or cut taxes in 2013. We are losing jobs to no income and low income tax states. In addition, we are currently below the national average in population growth. Less population growth means fewer tax dollars, leading to underfunding our schools.

WHAT?

Individuals - Phases in a reduction of the top income tax rate of .5% over a period of years.

Small businesses - Phases in a 25% deduction for business income over a period of years.

Low-income Individuals (adjusted gross income less than $20,000) - Increases the personal income tax exemption by $500.

WHEN? 2017

All tax cuts begin in 2017.

Tax brackets will be adjusted annually for inflation.

HOW?

Beginning in 2017, when the net general revenue collected in the previous year exceeds the highest amount of net general revenue collected in any of the previous three fiscal years by at least $150 million, a reduction of .1% in the tax rate for individuals and a 5% incremental increase in the tax exemption on business income for small businesses will occur.

Please click on the following links to review:

A letter of support from the Missouri Society of CPA's: https://www.dropbox.com/s/ej48wdejbb7o96n/CPA%20Letter%20to%20Denny%20Hoskins-SB...

An independent analysis prepared by the Missouri Society of CPA's in response to Governor Nixon's school funding calculations: https://www.dropbox.com/s/y56nc3mj04kuj5r/MOCPA%20Independent%20Analysis%20of%20...

A letter of opinion from former Missouri a Supreme Court a Justice, Ray Price: https://www.dropbox.com/s/74pwq1sagtrqzp5/Ray%20Price%20Opinion%20on%20SB%20509....

Governor Nixon's letter to school superintendents: https://www.dropbox.com/s/dhsrhovq40ug3lk/Nixon%20Letter%20to%20School%20Adminis...

SB 509 was delivered to the Governor on April 16 and he has 15 days to sign or veto the bill.

A quote from President John F. Kennedy, August 13, 1962

"Such a bill will be presented to the Congress to go into effect next year, January 1963. It will include an across-the-board, top-to-bottom cut in both corporate and personal income taxes. The billions of dollars this bill will place in the hands of the consumer and our businessmen will have both immediate and permanent benefits to our economy. Every dollar released from taxation that is spared or invested will help create a new job and a new salary. And these new jobs and new salaries can create other jobs and other salaries, and more customers and more growth for an expanding American economy."

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