Sales, income tax bill a unique combination in Missouri

Monday, April 29, 2013 | 7:45 a.m. CDT; updated 9:25 a.m. CDT, Monday, April 29, 2013

JEFFERSON CITY — A legislative proposal to change Missouri's income and sales tax rates appears to be a first-of-its kind proposition in the state.

Missouri has raised its sales tax several times since a 1 percent tax was imposed in 1933. But none of those increases has been linked to an income tax cut.

The Senate this week could consider whether to give final approval to a bill cutting income taxes for individuals and businesses while raising the state sales tax.

Republicans said the shift could make the state more appealing to businesses, but Democratic Gov. Jay Nixon says it could place a greater burden on seniors and veterans living on fixed incomes.

Missouri has not adjusted its income tax rates since 1973. The last sales tax increase occurred in 1989.

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