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May 17, 1999 House Leaders Push Through $200+ Million in Tax Relief Jefferson City-- Speaker Pro Tem Jim Kreider, D-Nixa, joined other House leaders in praise of a comprehensive tax relief package (HB 516) totaling over $200 million. The Missouri House pushed the tax cut package through just before the close of the first regular session of the 90th General Assembly on Friday. The largest portion of the tax cut package raised the personal exemption for single taxpayers from the current $1200 to $2100 and for married taxpayers filing combined returns from $2400 to $4200. "This is a great relief package we`ve put together for working families, and I am proud to have sponsored many of the individual provisions in it," stated Rep. Kreider. "This bill has meaningful relief for all Missourians, including retirees and small businesses." Small business faired well under the new tax cut package. The corporate franchise tax was eliminated for all businesses with under $1 million in revenue and the overall tax rate was reduced to 1/30 of one percent from 1/20 of one percent. Under a provision originally sponsored by Rep. Kreider, small businesses will also be eligible for a tax credit of up to $5000 for renovations to comply with the Americans with Disabilities Act (ADA). The self-employed will also gain as a result of the new law with a provision that will allow them to deduct the full cost of their health insurance premiums. "Our local communities depend on these small businesses and it was time that we, in the General Assembly, gave them some much needed tax relief," said Pro Tem Kreider. "These are just common sense measures designed to reduce the cost of doing business." In other provisions, the legislature shifted the burden of proof to the Department of Revenue in state tax cases involving individuals or corporations of no more than $7 million net worth. In addition, the tax cut package included Rep. Kreider`s proposal for a dollar-for-dollar phase out of the $6000 pension deduction for public and private employees. Under current law, any retiree whose income is over $32,000 per year loses the entire $6000 deduction. This legislation would slowly phase out the credit by raising the income amount to $38,000 and reducing the amount of credit on a dollar-for-dollar basis. "For the past seven years I have made tax relief my number one priority and I believe this session was our most successful yet. It certainly makes you feel better about spending five months away from your family," concluded Rep. Kreider. The $200+ million tax cut by the Missouri General assembly was in addition to another $50 million in tax credits previously passed this session. HB 516 is now on its way to the desk of Governor Mel Carnahan for his signature and final approval before becoming Missouri law. | |||||
Paid for by Kreider for Senator.
Bobby Neal Jr., Treasurer. Not at taxpayer's expense.
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