Taxes

‘Trigger’ laws set to cut tax rates in states

Missouri and potentially two other states will meet their requirements to drop rates.
The Missouri State Capitol in Jefferson City, Mo. (AP Photo/Jeff Roberson, File)

Tax cut “trigger” laws could drop income tax rates in three states next year if the right fiscal conditions are met, a result of tax policy changes instituted in response to the Covid-era revenue boom.

In Missouri, officials can already confirm the state’s top tax rate — which applies to taxable income over $8,449 — will drop from 4.95% to 4.8%. Louisiana and South Carolina could meet rate cut requirements, but it’s too soon to know if they were met.

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