The legislation given preliminary approval by the Republican-led Senate could mark Missouri’s most significant overhaul of its tax policies in a couple of decades.
The proposal would gradually reduce the state’s income tax rate by 1 percent while gradually increasing the state sales tax by one-half percent.
The IRS expects 75 percent of all 2012 returns will get a refund, so if you haven’t started preparing your taxes yet, do it.
“If you don’t limit spending all you’re going to see is bigger problems down the road,” Sen. Brad Lager said.
Missouri’s most recent budget numbers are out, and revenue is up seven and a half percent from a year ago.
Missouri Department of Revenue says those last remaining checks should be in the mail by the end of the month.
The Missouri House has endorsed a tax amnesty period for delinquent taxpayers
“Missourians are taxed twice; both for the money they make and the money they spend. We seek to eliminate this double taxation.”
A debate about whether to replace Missouri’s income tax with an expanded sales tax also has prompted a discussion about what to call the idea.
Poor families faced higher income tax bills in Illinois than in most states.