HB 637 Summary

• Restructures Missouri individual income tax rates effective January 1, 2012, replacing a graduated bracket system with 12 new tax brackets ranging from 1.5% on income under $2,000 to 9% on income over $50,000.

• Eliminates the federal income tax deduction for individual taxpayers after December 31, 2011, while maintaining a 50% deduction for corporate taxpayers.

• Establishes a new tax credit for resident taxpayers beginning January 1, 2012, providing $150 credits for single filers with federal adjusted gross income under $30,000 and head-of-household or married-filing-jointly filers with income under $60,000.

• Creates sliding-scale tax credits per eligible person (taxpayer, spouse, and dependents) ranging from $7 to $143 for those in higher income brackets, with credits phasing out as income increases.

• Requires submission of Section A to Missouri voters for approval at the November 2011 general election, becoming effective only upon voter approval.