MO HB2034

Establishes a new 12-bracket income tax structure effective January 1, 2011, with rates ranging from 1.5% on income under $2,000 to 9% on income over $50,000, replacing the previous 10-bracket system that topped out at 6% on income over $9,000

Eliminates the federal income tax deduction for individual taxpayers (previously capped at $5,000 single/$10,000 joint) for tax years beginning on or after January 1, 2011

Creates a refundable tax credit for lower and middle-income taxpayers: $150 for single filers with income under $30,000 and joint/head of household filers with income under $60,000

Provides a phased-out tax credit for single filers earning $30,000-$50,000 and joint/head of household filers earning $60,000-$80,000, with credit amounts decreasing from $143 to $7 per eligible person as income increases

Requires voter approval through a referendum at the November 2010 general election or a special election called by the governor before the changes can take effect