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April 16, 1999 Kreider Passes Pension Tax Relief Jefferson City-- Late Thursday afternoon the Missouri House gave first round approval to a measure sponsored by Speaker Pro Tem Jim Kreider, D-Nixa, that expands the $6,000 state tax exemption on both public and private pensions. Under current law, anyone who makes over $32,000 income automatically loses the entire $6000 credit. Rep. Kreider`s proposal would raise and slowly phase out the credit at $38,000 on a dollar for dollar basis. For example, a taxpayer who has $32,001 in pension income would get a $5,999 credit and someone with $37,999 of income would get $1 credit. "I think this just makes good common sense," stated Pro Tem Kreider. "It`s time we start paying a little more attention to our retirees who are on fixed incomes. With the Missouri Circuit Breaker Program already in place, I believe this is just another small step in the right direction toward meaningful tax relief for retirees." In addition, HB 120 speeds up the timetable for phasing in the $6000 exemption for private pensions. Legislation passed last year phased in the pension exemption for private pensioners by 2002. Rep. Kreider`s bill moves the full phase in to January 1, 2000. "My next fight is to raise the $6000 exemption to $10,000," said Rep. Kreider. "I believe these are responsible cuts given our good economy and I hope to persuade the Missouri House to move in this direction." | |||||
Paid for by Kreider for Senator.
Bobby Neal Jr., Treasurer. Not at taxpayer's expense.
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