The state of Missouri has announced that it will increase the income tax rate for its residents starting from the year 2024. The new tax rate will be 6.5%, up from the current 5.4%. This means that a person earning $50,000 a year will pay $3,250 in state income tax, instead of $2,700. The state government claims that the tax hike is necessary to fund public services and infrastructure projects, as well as to reduce the budget deficit. However, some critics argue that the tax increase will hurt the economy and the living standards of the people.
Pros and Cons of the Tax Increase
The supporters of the tax increase say that it will generate more revenue for the state, which can be used to improve the quality of education, health care, transportation, and public safety. They also say that the tax increase will make the tax system more progressive, meaning that the wealthy will pay a higher share of their income than the poor. They point out that Missouri has one of the lowest income tax rates in the country, and that the tax increase will still keep it below the national average of 7.3%.
The opponents of the tax increase say that it will discourage economic growth and job creation, as well as reduce the disposable income of the people. They also say that the tax increase will make the tax system more complex and burdensome, as it will create different tax brackets and exemptions. They argue that Missouri has one of the highest sales tax rates in the country, and that the tax increase will make it harder for the people to afford the basic necessities of life.
Conclusion
The state of Missouri has decided to raise the income tax rate for its residents in 2024, from 5.4% to 6.5%. The state government says that the tax increase is needed to fund public services and infrastructure projects, as well as to balance the budget. However, some critics say that the tax increase will harm the economy and the living standards of the people. The tax increase will have different impacts on different income groups and sectors of the society. The people of Missouri will have to weigh the costs and benefits of the tax increase and decide whether it is worth it or not.