Posted: May 9, 2013 5:15 PM by Associated Press
JEFFERSON CITY - Missouri lawmakers have given final approval to an income tax cut for businesses and individuals that could reduce state revenues by about $700 million when fully phased in.
The legislation passed Thursday would mark the first decrease in Missouri's income tax rate since 1921. It's intended to counteract a recent income tax cut in Kansas, which is battling Missouri for businesses.
The tax cut was a top priority of Missouri's Republican-led Legislature. But Democratic Gov. Jay Nixon has not said whether he will sign it.
The measure would gradually reduce business income taxes by about half and would lower Missouri's top individual income tax rate from 6 percent to 5.5 percent over 10 years. The incremental cuts would take effect only if annual revenues rise by $100 million.