Missouri House leaders reveal $1 billion tax credit plan to spend down record surplus

As the annual income tax filing deadline approaches on Friday, Republican legislative leaders have announced a plan to use $1 billion from the state’s historic surplus for tax rebates.

Under a bill introduced Monday, single income tax filers would receive a $500 credit and married couples a $1,000 credit if they lived in the state for all of 2021. The credits would be issued after the new fiscal year begins July 1.

“As families struggle to make ends meet with the rising cost of inflation, it’s important that we do everything we can to help them keep more of their hard-earned dollars, House Budget Committee Chairman Cody Smith, R-Carthage, said in a news release. “The state is fortunate to have a record surplus that we can use a portion of to provide direct economic relief to working Missourians.”

Under the bill, lawmakers would appropriate $1 billion from the general revenue surplus that could reach $3.5 billion in the coming year toward the credits. Each tax filer would receive a credit equal to their state tax liability.

Read more: https://missouriindependent.com/briefs/missouri-house-leaders-reveal-1-billion-tax-credit-plan-to-spend-down-record-surplus/