New tax cuts mostly favour the rich across states

WASHINGTON Part of a broader push to eliminate the state income tax altogether, legislation making its way through the Capitol would provide an unprecedented benefit to the wealthy by excluding capital gains, the long-term earnings from the sale of assets

- Kevin Hardy, Tribune News Service

Missouri Republicans may take their tax-cutting efforts to new heights this year as lawmakers consider exempting profits from the sale of stocks, bonds and real estate from state income taxes.

Part of a broader push to eliminate the state income tax altogether, legislation making its way through the Capitol would provide an unprecedented benefit to the wealthy by excluding capital gains, the long-term earnings from the sale of assets. If approved, tax experts say, the legislation would mark the first time a state with an income tax has eliminated capital gains tax. The Republican sponsors say the move would make the state more attractive for businesses and families. “This bill is intended to energise Missouri's economy,” Republican Speaker Pro Tem Chad Perkins said upon introducing the measure. But state Democrats — and even some of their GOP colleagues — have criticized the measure as being overly favorable to the wealthy. Most states’ tax systems already put a higher tax burden on lower-income households. That trend only accelerated in this year's legislative sessions, worrying advocates who want to see the rich pay a larger share.