JEFFERSON CITY, Mo. – The Missouri House of Representatives will have a new committee aimed at reviewing and evaluating earnings taxes in the state of Missouri.
Missouri House Speaker Dean Plocher announced the creation of the new Special Interim Committee on the Earnings Tax this week, which will be tasked at looking into the earnings tax across the state, with a primary focus placed on St. Louis’ earnings tax and its effect on the outlook for the region.
To head up the committee, Speaker Plocher has selected Rep. Jim Murphy to serve as the chair, and Ben Baker (R-Neosho) to serve as vice chair. The following representatives have also been selected to serve on the committee as members: Ben Keathley (R-Chesterfield), Wendy Hausman (R-St. Peters), Tony Lovasco (R-O’Fallon), Mike McGirl (R-Potosi), Marlon Anderson (D-St. Louis), Steve Butz (D-St. Louis), and Maggie Nurrenbern (D-Kansas City).
The Earnings tax is one percent tax on salaries, wages, commissions, tips and other compensation paid to a person that lives or works in a designated city, such as St. Louis or Kansas City. According to the City of St. Louis, the city’s earnings tax makes up 36 percent of the general revenue for St. Louis, with the revenue collected from the tax providing resources for the city, ranging from lighting and street repair to fire and police services, as well as various other services and events.
“The work of this committee will be invaluable as we continue to look at how our citizens are being taxed in this state,” Plocher, R-St. Louis, said. “As costs rise and more Missourians are facing financial difficulties, it’s more important than ever to look at the data and have a meaningful discussion about these taxes, and see just how they are affecting Missourians as well as employment and economic growth in our state. The Missouri House has made a commitment to ensure that the overall tax burden on our citizens does not force families into making tough decisions, and I know that this committee will put in the work to find out the best way to ensure that our taxes are low, fair, and effective.”
Missouri House Speaker Dean Plocher, a Republican, represents part of St. Louis County (District 89) in the Missouri House of Representatives. The district includes the municipalities of Chesterfield, Country Life Acres, Crystal Lake Park, Des Peres, Frontenac, Huntleigh, Kirkwood, Ladue and Town & Country. Rep. Plocher was elected in a Special Election in November, 2015.