Governor Bob Holden has said he wants to see to it that Missourians don’t pay state taxes on the federal refund checks they’re expecting this summer. And, the Governor is getting some advice on how this can easily be accomplished. The Missouri Chamber of Commerce is calling on the Governor and the Legislature to pass a one-time exemption to allow Missourians to get the most from the tax refund. The Chamber says changing the law permanently would take away a tax deduction that Missouri and eight other states use – a deduction of their federal taxes paid. Under normal circumstances, a federal refund would be considered earned income and subject to state taxation.
