'Nothing like Kansas': Gov. Parson defends Missouri income tax cut, signing it into law

Galen Bacharier
Springfield News-Leader

JEFFERSON CITY — Gov. Mike Parson signed an income tax cut into law Wednesday, touting the "largest cut in Missouri history" while defending the measure against criticism that it favors the wealthy and puts the state's finances at risk.

"There are some who would like to believe tax cuts are a bad thing, that money in your pocket is a bad thing," Parson said in remarks prior to signing the bill into law in his Capitol office. "They think that since we already have your money, then we should spend it. They want to compare it to Kansas. But this plan is nothing like Kansas."

Under the plan, Missouri's top individual income tax rate will fall from its current 5.3% to 4.95% in 2023. It builds in a series of gradual cuts triggered by state economic growth that over the course of years can bring that rate down to 4.5%. It also eliminates the bottom income tax bracket, making the first $1,000 of earned income tax-free.

Republicans, who control both chambers of the legislature, made slight adjustments to Parson's original proposal but maintained the core of his tax cut plan, hailing it as well-timed relief for taxpayers as rising prices and inflation take a toll on their pocketbooks.

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But it was widely criticized by many Democrats, who called it fiscally irresponsible for the state's future, as well as most beneficial for the wealthy. Comparisons were at times drawn to Kansas, under which Republican leaders dramatically cut taxes and, as a result, state funding. One of the chief architects of that Kansas plan was present in meetings with the governor and lawmakers this summer.

"Republicans are going to go back to their districts and talk about how they're putting more money back in Missourians' pockets," House Minority Leader Crystal Quade, a Springfield Democrat, said this week. "They won't tell you that most folks will get just a few bucks back a year."

An analysis of the final tax cut plan by think tank Missouri Budget Project estimated that the average person making between $22,000 and $40,000 would see about $29 per year in savings under the plan; the average person making more than $552,000 would see about $9,578. Parson's office has not released updated data indicating savings estimates by income bracket under the plan.

Parson defended the proposal as being "uniform," providing around a 5% tax burden decrease across all taxable income brackets.

"As long as you're being fair to everyone," Parson said. "Everybody's drawing a paycheck. If you draw more, you're going to pay more."

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The governor said when his office developed the income tax cut proposal, they made sure "the everyday person" — giving the examples of grocery store and gas station workers — was "our main priority." Asked why he didn't propose a break in the sales tax to combat rising prices or a property tax decrease to benefit those on fixed incomes, Parson argued that an income tax cut "was the most effect we could have on people."

"There's lots of things out there that people want to do," he said. "We're open to reducing taxes on people, I can tell you that. But you also have to do something you feel like you can get passed through (the legislature). And I think at the time, that's the best thing we can do right now for everybody."

Galen Bacharier covers Missouri politics & government for the News-Leader. Contact him at gbacharier@news-leader.com, (573) 219-7440 or on Twitter @galenbacharier.