Missouri taxpayers sending their kids back to school this month can shop for school supplies with a bit more confidence.
Beginning January 1, their paychecks will increase because of the state’s 2014 tax cut triggered this summer.
But major tax relief for all Americans must come at the federal level, where the effective tax rate for median Missouri families is about three times larger than the state burden. For state small businesses, which create the vast majority of the state’s jobs and generally pay tax at the individual level, federal marginal income tax rates reach 40 percent.
President Donald Trump visited Missouri last month to explain how federal tax cuts would help the state’s hardworking taxpayers and their brethren across the country. According to the Tax Foundation, passing tax cuts as Trump and congressional Republicans have indicated, would raise median Missouri household wages by $5,000 and regenerate the state’s beleaguered Main Streets by creating 33,000 jobs.
Missouri sends about $64 billion off to Washington D.C. in federal taxes each year, or about $10,500 for every state resident. More of this money should stay in Missouri’s communities where it is needed rather than be shipped off to Washington where it is not.
Despite the improving economy, many parts of the state are still struggling. The unemployment rates in many communities, including Kansas City neighborhoods around Blue Valley Park, approach and exceed 15 percent, according to the most recent data from the U.S. Census Bureau.