Kraus tax cut now expected to top $620 million a year

The Missouri state Senate now has another consideration on its plate when it comes to a potential tax cut this year.

The AP reports today that a new estimate of the tax-cut proposed by state Sen. Will Kraus, a Lee’s Summit Republican, sits at $620 million.

Kraus, who has worked with Democratic Gov. Jay Nixon to iron out differences on a cut, had estimated the plan’s cost at about $500 million a year once it was fully implemented.

Legislative researchers tabulated the numbers.

A Senate fiscal review committee is expected to review the measure Monday. If it signs off, the full Senate would then consider it.

The bill would phase in a half-a-percentage-point reduction in Missouri's top individual income tax rate and a new 25 percent deduction for business income reported on individual tax returns. It also would expand the deductions available for lower income individuals and require the tax brackets to be adjusted annually for inflation.

This story was originally published March 31, 2014 at 8:55 AM with the headline "Kraus tax cut now expected to top $620 million a year."