Tax reform bill filed by Missouri House leaders could put more money in your pocket

SPRINGFIELD, Mo. Some Missouri lawmakers are working on a state tax reform plan that could put extra money in your pocket.

A committee passed the Missouri Senate's version of a tax reform plan last week. It promises to cut our income taxes and generate more money for our struggling infrastructure by raising the gas tax.

Thursday, the Missouri House leader's filed their version. It also cuts our income taxes but raises money for the state in a very different way.

"It's my sixth year in the building and every year we hear the fight over how we're going to fund our roads," said Rep. Elijah Haahr (R) Springfield.

Haahr says he worked with other house Republican leaders to come up with a solution.

"We're really killing two birds with one stone. Do tax reform, tax cuts, modernize our tax policy for the state and also fix our infrastructure plan once and for all," he said.

Part of the plan will cost you more. DMV fees for all services haven't been increased since 1984. The tax bill will update the prices for inflation.
This will raise about $175 million dollars for state road improvements during the first year and about $60 million for county and local roads.

"With the increase in fuel, economy in cars, we're missing out on revenue. The gas tax is somewhat of a relic of a bygone era," he said.

Also part of the bill establishing a state tax rate for online retail sales generating more money.

"It would put brick and mortar businesses in the state on parity with online retailers," said Haahr.

The tax reform bill aims to close loopholes and eliminate deductions.

Most importantly it promises to lower an individual state income tax from 5.9 percent down to 5 percent.

"We want to have a simpler and flatter tax system. We want to be able to tell the families in Missouri they get to be able to keep more of their money and be able to compete around the country for jobs and we need to rebuild our infrastructure. I think this bill does all of those three things and I think it does it in a fiscally responsible manner," he said.

Haahr said if approved the bill will generate more than $2 billion in funding for our states roads and bridges over the next ten years.