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Senators in Missouri Support a $500 Tax Refund for Individuals!

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Under a measure backed by state senators, many Missouri taxpayers might receive a one-time refund of up to $500 per individual as a means to help offset inflation while also reducing the state’s surplus.

The Senate proposal is identical to one that was previously passed by the House, but it would apply to fewer people and would be less expensive for the state. The idea still needs a final Senate vote before it can be sent to the House of Representatives and then to Governor Mike Parson.

Individual taxpayers with adjusted gross incomes of up to $150,000 per year and married couples with adjusted gross incomes of up to $300,000 per year could be eligible for a one-time refund of up to $500 per individual and $1,000 per couple under the Senate plan.

If necessary, reimbursements could be prorated in order to keep the total expenditures below a $500 million maximum.

Senators in Missouri Support a $500 Tax Refund for Individuals!

The House plan includes a return of a similar level, but there are no income qualifying restrictions and a total cap of $1 billion before proration is applied. Democrats who were vocal in their opposition to the Republican-backed House bill claimed it was skewed in favor of the wealthy.

People must pay their taxes in order to be eligible for a refund under either plan. It is likely that customers will be given a $1 refund for every $1 of tax they are responsible for paying until their tax bill hits the $500 refund maximum.

It was described as a “rebate of your hard-earned (tax) dollars” by Dan Hegeman, chairman of the Senate Appropriations Committee and a Republican who sponsored the legislation. He claimed that inflation was driving up the cost of living and reducing people’s take-home salaries.

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Senate Minority Leader John Rizzo, a Democrat, introduced the income eligibility condition. He said that the tax relief was targeted at “middle-income folks” who “had been put through the wringer over the last few years” as a result of the coronavirus outbreak.

Lawmakers are considering tax breaks as they finish up work on a state budget that is on track to be the largest in state history, thanks to robust state tax receipts and an influx of federal pandemic funding.

To reach an agreement on the law, the two chambers must do so by May 13.

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