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March 27, 2014JEFFERSON CITY, Mo. | By: Associated Press
Missouri senators have endorsed an income tax cut that could eventually waive an estimated $464 million annually in state revenues. The legislation given initial approval Wednesday would cut taxes by half of the amount originally proposed by a Republican-led committee. It could gradually cut the state's top individual income tax rate to 5.5 percent from the current 6 percent. It also could phase in a 25 percent deduction for business income reported on individual income tax returns, and add a $500 tax deduction for lower-income individuals.
The tax cuts could not take effect until 2017, and only then if state revenues grew by at least $150 million. The bill does not contain Governor Jay Nixon's proposals to make the tax cuts contingent on full school funding and new tax-credit limits.