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Missouri House Committee to Vote on Flat Tax Reform Proposal
4% Flat Tax Plan: Replacing Current Income Tax System by 2025
A Missouri House committee will vote on a plan that would establish a flat tax of 4%, which might result in a significant tax reform decision. The plan, which is being sponsored by Representative Bishop Davidson, intends to replace the current income tax system beginning in 2025 with a flat tax rate of 4% on all income above $1,000. However, estimations point to a large decline in state revenue, which raises concerns about the viability of maintaining public services in the absence of considerable cuts. While opponents, such as Brian Colby of the Missouri Budget Project, caution against depriving the state of essential resources and transferring the burden onto sales taxes, supporters of the flat tax contend that it might raise more revenue.
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Missouri House of Representatives Awaits Vote on 4% Flat Tax Ballot Proposal – Flat Tax Debate Heats Up!(PHOTO: getty images)
Missouri Committee Tackles Multifaceted Tax Reform with Two Joint Resolutions
The committee will take up two joint resolutions on tax reform in addition to the flat tax idea. The purpose of House Joint Resolutions 187 and 188 is to propose constitutional amendments that would create a “Tax Reform Fund” to manage surplus funds and progressively lower property and personal income taxes. These resolutions present a multifaceted approach to tax reform, offering possibilities for tax reductions in addition to addressing concerns over the state’s long-term financial sustainability. However, while the committee considers the future of Missouri’s tax policy, legislators and stakeholders continue to disagree about the possible ramifications of these resolutions, particularly with regard to the total repeal of income and property taxes.
