Dear Friends and Supporters,
On Friday the United States Commerce Department reported that the GDP growth rate for the second quarter of 2018 was a remarkable 4.1%. In the last couple of years the US economy is finally experiencing the vigorous economic growth that generally follows recovery from deep recessions such as the 2008 Great Recession. A number of factors are at play, including reduction in regulation, an end to the war on affordable energy, and, very importantly, the Trump-GOP federal tax cuts.
I am happy to report that at the state level, we likewise have passed, and Governor Mike Parson signed, legislation giving tax relief to Missourians and allowing them to keep more of their hard-earned income.
House Bill 2540 provides broad tax-relief. This bill lowers the top individual income tax bracket from 5.8 percent to 5.4 percent beginning on Jan. 1, 2019. At the same time, the individual income tax rate has the ability to be lowered even further due to legislation passed several years ago. Under that legislation, if the state meets certain revenue targets, the income tax rate could go as low as 5.1 percent and move Missouri toward one of the lowest income tax rates in the country.
I believe lowering the income tax rate is an important step toward unlocking our state’s potential. I believe you know how to best spend your hard-earned money, and I believe keeping government away from Missourians’ pocket books will prove to be a boon for our state. This tax cut gives Missourians more opportunities to provide better lives for their families, start or expand small businesses and invest in a future that will help make this state a better place.
Ultimately, the passage of HB 2540 shows our commitment to ensuring Missourians keep more of their hard-earned money, while maintaining an efficient and effective state government. I am glad that Governor Parson has signed this important piece of legislation.
Winston Churchill said, “For a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” This statement is as true today as it was in 1948 and applies to all levels of government.
As always, thank you for your interest in our work at the state Capitol. I look forward to sharing some of the important issues affecting our state and our community in my next report. It is an honor and a privilege to serve you in the Missouri Senate!
Robert F. (Bob) Onder, Jr.
State Senator District 2
Serving Western St. Charles County
Assistant Majority Floor Leader