News from the South - Missouri News Feed

Missouri Senate committee moves quickly on capital gains tax cut

Published

3 weeks ago

February 25, 2025

Staff Editor

missouriindependent.com – Rudi Keller – 2025-02-25 12:01:00

Missouri Senate committee moves quickly on capital gains tax cut

by Rudi Keller, Missouri Independent
February 25, 2025

The first bill passed by the Missouri House that is headed to the Senate floor for debate would exempt long-term capital gains from the state income tax.

On a 3-2 party-line vote, the Senate General Laws committee approved the bill to create the new tax deduction. The bill passed the House on Feb. 13, also on a party-line vote, with Republicans supporting the measure and Democrats opposed.

If passed into law, the proposal sponsored by House Speaker Pro Tem Chad Perkins, a Republican from Bowling Green, would reduce state revenue by about $335 million in the year starting July 1 and permanently reduce revenue by about $234 million per year.

The committee took quick action, Chairman Curtis Trent of Springfield said, because it had already voted to approve identical legislation filed in the Senate. That bill is on the Senate calendar awaiting debate.

“This has been a priority in both chambers, and there’s no reason to delay, you know, passage of it through the process,” Trent said after the vote.

The bill would allow Missourians to deduct any income reported on their federal returns as long-term capital gains from the income subject to the state income tax.

Federal law taxes long-term capital gains, defined as assets held for more than one year, at lower rates than income from wages. Current Missouri law does not make a distinction between the two sources of income.

State Rep. George Hruza, a Republican from St. Louis County, said during Tuesday’s hearing that eliminating the state taxes on capital gains will boost the Missouri economy by encouraging investment, both from the sale of existing assets and from newcomers to the state.

“This frees up capital because right now, people don’t sell their property because of capital gains tax,” Hruza said.

While it may become the first tax-cut bill debated in both chambers, it is by no means the largest being considered. Last week, the Senate Economic and Workforce Development Committee approved a pair of bills that would, if approved by voters, eliminate the state income tax in 2027.

The debate on taxes comes as Missouri is in a period of sluggish revenue growth. Through Monday, general revenue receipts are down nearly 2% from the fiscal year that ended June 30.

Revenue increased 1.5% in the most recent fiscal year and it is projected to grow by 1.6% in the coming fiscal year.

The revenue reduction from a cut in the capital gains tax would be greater than the anticipated growth in the coming fiscal year.

Eliminating the tax on capital gains could cost more than the estimate and would mainly benefit wealthy taxpayers, Brian Colby, vice president of the Missouri Budget Project told the committee.

“We just want to go on the record with heartburn about the fiscal note,” Colby said, “and the concern about the distribution of the tax break that skews way up higher in the income scale.”

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Missouri Independent is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Missouri Independent maintains editorial independence. Contact Editor Jason Hancock for questions: info@missouriindependent.com.

The post Missouri Senate committee moves quickly on capital gains tax cut appeared first on missouriindependent.com

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News from the South - Missouri News Feed

Trump cuts Department of Education in half

Published

7 hours ago

March 15, 2025

Staff Editor

www.youtube.com – KSDK News – 2025-03-15 14:51:55

SUMMARY: The Trump administration’s recent cuts to the Department of Education have led to the dismissal of 1,300 employees, including half of the Office of Civil Rights. Parents and advocates fear this will weaken federal oversight of special education, risking regression for vulnerable students. While Education Secretary Linda McMahon claims core functions will remain intact, critics argue this move aligns with President Trump’s goal to dismantle the department. Some, like Wyoming’s superintendent, welcome the changes as a way to reduce federal influence and allow states greater control over education. This shift is likely to intensify debates on school choice versus traditional public schooling.

Half of the employees of the U.S. Department of Education have been given walking papers in what is believed to be a first step in shutting the entire department down.

1,300 employees are gone, including half of the Civil Rights division.

S/ Lindsay Latham / Mom and Disability Advocate

“If we go backwards, we are going to see such a regression in the most vulnerable population,” said Lindsay Latham, a mother and disability advocate.

While schools are run and funded at 90 percent at the state level, the Education Department is tasked with protecting students with disabilities, investigating discrimination and helping low income school districts.

Education Secretary Linda McMahon said those basic functions will continue.

“None of that is going to fall through the cracks.”

McMahon has acknowledged that the ultimate goal is the end of the very department she leads.

“His directive to me, clearly, is to shut down the Department of Education.”

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Thousands without power, widespread damage from Missouri tornadoes

Published

16 hours ago

March 15, 2025

Staff Editor

www.youtube.com – KSDK News – 2025-03-15 06:21:16

SUMMARY: Severe weather and tornadoes caused widespread damage across Missouri, with heavy winds and power outages impacting many areas. North St. Louis County experienced downed power lines, and a fire spread to homes after tree branches fell on power lines. Thousands remain without power, with over 477,000 in St. Louis County alone. The storm’s impact also included fires caused by barbecue pits and debris scattered across streets. Officials urge caution around downed power lines and flooded areas. Power restoration may take days or even weeks in some locations. Drivers are warned about high water hazards, and several rescues have been made.

Close to 150000 buildings are without power Saturday morning and sunlight will soon shed light on neighborhood damage after …

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Nashville girls basketball rides dream season to state championship

Published

1 day ago

March 14, 2025

Staff Editor

www.youtube.com – KSDK News – 2025-03-14 20:23:39

SUMMARY: Nashville girls basketball clinched the Illinois Class 2A State title with a 55-29 victory over Poria Notre Dame in 2025, marking their first championship since 2013. This hard-won victory avenged last year’s loss to the same team. The Hornets, boasting a 32-3 record, credited their success to off-season dedication and community support. Team members emphasized the importance of teamwork and sacrifice, believing this championship could be the start of sustained success. With a roster filled with underclassmen, including key players like Samantha and Summer Brinkman, Nashville aims to add more banners in the coming years.