The state of Missouri has declared that, as of 2024, its citizens’ income tax rate will be increased. The existing 5.4% tax rate will be replaced with a 6.5% rate. This implies that rather of paying $2,700 in state income tax, a person making $50,000 per year will instead pay $3,250. According to the state government, the tax increase is required to close the budget deficit and pay for infrastructure and public services. On the other hand, some opponents contend that the tax hike will negatively impact the nation’s economy and level of living.

Pros and Cons of the Tax Increase

Proponents of the tax hike claim that it will bring in more money for the state, which will allow it to spend more on public safety, transportation, health care, and education. Additionally, they claim that the tax rise will make the tax system more progressive, meaning that the wealthy will pay a larger percentage of their income in taxes than the impoverished. They point out that Missouri has one of the lowest rates of income taxation in the nation, and even with the tax hike, it will remain lower than the 7.3% national average.

Opponents of the tax increase claim that it will lower people’s disposable income and stifle job development and economic progress. Additionally, they claim that because the tax hike will result in new tax brackets and exemptions, the tax system will become more complicated and onerous. They contend that Missouri has one of the highest rates of sales taxes in the nation and that the tax increase will make it more difficult for the populace to pay for needs.

Conclusion

Missouri has made the decision to increase its citizens’ income tax rate from 5.4% to 6.5% in 2024. According to the state government, the tax hike is necessary to balance the budget and pay for infrastructure and public services. On the other hand, some opponents claim that the tax hike will negatively impact the nation’s economy and level of living. The effects of the tax hike will vary depending on the social classes and income levels of the population. The people of Missouri will have to choose if the tax hike is worthwhile by balancing its advantages and disadvantages.