GOP states sue Biden administration over student loan plan

Six Republican-led states are suing the Biden administration to try and halt its plan to forgive student loan debt for millions of Americans. They're accusing it of overstepping its executive powers. It’s at least the second legal challenge this week to the sweeping proposal laid out by President Joe Biden in late August, when he said his administration would cancel up to $20,000 in education debt for millions of borrowers. As the lawsuit was being filed, the administration quietly scaled back eligibility rules for the debt relief, eliminating a relatively small group of borrowers who are the subject of legal debate in the suit.

Missouri House committee moves to end corporate income taxes

A powerful Missouri House committee is trying to phase out corporate income taxes. The House Budget Committee on Wednesday tacked the provision onto another bill to cut individual income taxes. The proposal would cut corporate income taxes from 4% to 2% over a series of years and eventually phase out the tax completely. Republican Gov. Mike Parson had called lawmakers back for a special session to spend some of the higher-than-unusual revenue growth this year on tax cuts. The GOP-led Senate advanced a bill to cut the top individual income tax rate from 5.3% to 4.95% next year and additional incremental cuts until the rate hits 4.5%.

Missouri Senate passes individual income tax cuts

Missouri taxpayers could get a break on income taxes under a proposal passed by the state Senate. The GOP-led chamber on Wednesday voted 24-4 in favor of the bill. The measure now heads to the Republican-led House for consideration. The bill would cut the top income tax rate from 5.3% to 4.95% in 2023. Most Missourians pay the top income tax rate. Income taxes could gradually fall to as low as 4.5% if the state meets revenue growth benchmarks tied to inflation. The measure also eliminates the lowest tax bracket, meaning earners who bring in less than about $1,000 a year would no longer have to pay state income taxes.

Missouri Senate committee negotiates income tax cut

Missouri state senators have advanced two plans to cut income taxes. The Senate Appropriations Committee on Monday voted out Republican Gov. Mike Parson's bill and an alternative proposal. Parson wants lawmakers to cut the top income tax rate from 5.3% to 4.8%. Another proposal by Sen. Lincoln Hough would cut the top rate to 5%. Under that bill, taxes could continue to gradually drop to as low as 4.5% if the state meets revenue growth thresholds tied to inflation. Hough says he's still working behind the scenes to find a compromise.