MO Governor calls for tax cut and farm tax credit extension
Governor Mike Parson is calling for the largest income tax cut in Missouri history in the state’s next special legislative session.
The governor is traveling across the state to discuss the need to cut taxes – meeting with Reps. Kent Haden, Chad Perkins and Tim Taylor on Tuesday.
Haden tells Brownfield that the state’s proposed 4.8% income tax cut has already been approved for the next four years, but…
“It would get it to that rate immediately,” he said. “And, really, we’ve already voted to get it to that rate over a period of time with certain triggers. That said, “hey, our economic situation is good enough to move forward before we pull the trigger.”
Haden said Parson estimates about $780 million is available to provide an adequate “cushion” and cover unforeseen expenses, allowing the tax cut to take place as soon as possible.
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 seek to extend tax credits to biofuel makers, meat packers and young farmers. Parson vetoed a two-year extension of tax credits in July, saying a full six-year extension under the Missouri Agriculture and Small Business Development Authority was needed.
Haden said farm tax credits would give farmers a boost in a tough year.
“Nearly all of our farm omnibus bill tax credits have given, at least, a two-and-a-half to seven-to-one return,” he said. “So almost all of these programs are proven and important to our agricultural producers.”
Haden said the state legislature has the option to override Parson’s veto of the two-year appropriation extension if a full extension fails during the special session.
“But the two-year-old [extension] is not very feasible from a management point of view for the grower, for the bankers or really for the Department of Agriculture that oversees it,” he said.
The date for the special session is yet to be set, but Haden expects it to take place the first week of September.