Federal tax proposals put state revenue in jeopardy
November 8, 2017
Missouri’s ability to pay its bills could be dependent on what Congress includes in a tax cut plan. One proposed change would almost double the standard deduction, used by 71 percent of Missouri taxpayers on their federal and state returns. Missourians used it to reduce taxable income by $17.1 billion in 2015 and the deduction is slated to grow by 90 percent under the plan proposed last week. “It is obvious that this is a ginormous revenue loser for the state,” said Tom Kruckmeyer, chief economist for the Missouri Budget Project.