Many Social Security recipients will get a tax cut next year. The House has easily approved the measure 133-11 and sent it to Governor Blunt, who backs the proposal.
House Speaker Rod Jetton (R-Marble Hill) didn’t get everything he wanted, but says the bottom line is that taxes will be cut for hundreds of thousands of citizens. Individual Social Security recipients with incomes up to $25,000 will benefit as will couples earning up to $32,000. Other government pensioners outside the Social Security system, such as retired teachers, will receive a break as well. When fully implemented in six years, it will be a $154 million tax cut. Jetton says he didn’t want the phase-in, but accepted it to get the bill through the Senate, which has had a less rosy picture of the state budget.
Jetton says the bill will stimulate the economy, because senior citizens will spend the money. Jetton says the state also should end the practice of double-taxing Social Security. He says Missouri will derive other benefits by becoming a more retiree-friendly state.
The House approves HB 444 133-to-11 and sends it to Governor Blunt.
Some Democrats say the legislature lost focus. They contend the money should have been used to restore those Medicaid cuts, not for a tax cut.
Download/listen Brent Martin reports (:60 MP3)
