JEFFERSON CITY — Gov. Mike Parson’s successful push to convince lawmakers to approve a package of tax cuts cost at least $164,000.
According to legislative tallies, the recent special session designed to approve a significant income tax reduction for all Missouri taxpayers, as well as a number of tax incentives for the agriculture industry, cost $126,706 in the House and $37,727 in the Senate.
While lawmakers themselves did not receive additional pay above their normal $36,800-per-year salaries, the decision to bring senators and representatives to the Capitol beginning last month cost taxpayers in additional daily hotel, meals and mileage reimbursements.
In addition, some employees who don’t work year-round also were brought back in for the session. Those include workers such as doormen, clerks and a pastor who offers a prayer at the beginning of each daily session.
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Also unaccounted for is the cost of delaying work in the House, which was undergoing a renovation when Parson called lawmakers back to the Capitol. That work, including the replacement of carpeting in the chamber, has resumed.
Parson, a Republican, asked for and received legislative approval of a plan to reduce income taxes.
Under the plan worked out by lawmakers in the monthlong special session, the state’s top income tax rate will drop from 5.3% to 4.95% beginning in January. Then, if certain revenue thresholds are met, the rate will slowly drop to 4.5%.
Along with the $1 billion tax cut, Parson approved a package of tax incentives for agricultural businesses that will cost the state an estimated $40 million.
The credits affecting meat processors, biodiesel and ethanol producers, young farmers and the forestry industry were because lawmakers had only extended them for two years.
Under the plan sent to Parson earlier this month by the Senate, lawmakers extended the tax breaks to six years, which the governor said will assist the industries in financial planning.
The tax reduction plans were put into law as record-breaking levels of tax revenue have flooded the state’s checkbook, partly fueled by inflation, rising wages and more than $10 billion in pandemic relief funds from the federal government.