Starting from the year 2024, Missouri residents will experience an increase in the income tax rate, as announced by the state. The new tax rate will be increased to 6.5% from the current rate of 5.4%. So, someone making $50,000 annually will now have to pay $3,250 in state income tax, rather than $2,700. The state government asserts that the tax increase is essential for financing public services and infrastructure projects, while also addressing the budget deficit. However, there are critics who believe that the tax increase will have a negative impact on the economy and the living standards of the people.
Advantages and Disadvantages of the Tax Increase
Proponents of the tax increase argue that it will lead to increased state revenue, which can then be allocated towards enhancing education, healthcare, transportation, and public safety. Furthermore, it is claimed that the tax increase will result in a more progressive tax system, where the affluent individuals will contribute a larger portion of their income compared to those with lower incomes. It is highlighted that Missouri has a relatively low income tax rate compared to other states in the country. Despite the proposed tax increase, Missouri’s rate will still remain below the national average of 7.3%.
According to the tax increase opponents, it will have negative effects on economic growth, job creation, and people’s disposable income. Furthermore, it is claimed that the tax increase will result in a more convoluted and onerous tax system, with the introduction of various tax brackets and exemptions. They claim that Missouri has an exceptionally high sales tax rate compared to other states, and that the proposed tax increase will further burden people’s ability to afford essential items.
In 2024, the state of Missouri has made the decision to increase the income tax rate for its residents from 5.4% to 6.5%. The state government explains that the tax increase is necessary to support public services and infrastructure projects, while also ensuring a balanced budget. However, there are critics who argue that the tax increase will have a negative impact on the economy and the living standards of the people. The tax increase will affect various income groups and sectors of society in different ways. Missouri residents will need to consider the expenses and advantages of the tax increase and determine its value.