Nixon after the news of the vote said:
"Missouri families and businesses know that public education is the best economic development tool there is, and that is why I vetoed Senate Bill 509. While scaled back from last year’s billion-dollar House Bill 253, Senate Bill 509 fails to prioritize or adequately protect public education at a time when quality public schools are more important than ever to our ability to create jobs in the global economy.”
The Coalition for Missouri's Future recently called the bill "yet another misguided tax cut scheme" and cited a number of local local school officials and social service agencies that declared that revenue cuts from SB 509 would severely impair education and seriously affect seniors or those living with disabilities, respectively. The group is outraged that legislators would choose to do the bidding of wealthy special interests rather than protect the services that benefit all Missourians.
What does the bill do?
The act modifies the individual income tax rate beginning in 2017 and once fully phased in creates a top rate of five-and-one-half percent instead of the current six percent with brackets adjusted for inflation. For a taxpayer with an adjusted gross income of $100,000 the savings would be $5,000. Also, once fully phased in taxpayers will be allowed to deduct 25 percent of their business income from their adjusted gross income.
To appease lower income taxpayers individudals with an adjusted gross income of less than $20,000 will be allowed an additional $500 deduction for their personal exemption, making the total deduction $2600. If based on the tax rate reduction their savings might be $27.50 or $55 filing jointly.