Proposed Tax Cut, Lower Unemployment and Gas Prices Highlight Missouri Economy | Missouri

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(The Center Square) – Missouri’s economic landscape was shaped by two data points this week and a tax cut announcement Monday.

Missouri’s unemployment rate of 2.5% in July, subject to revision, is the lowest rate recorded in Missouri since the data series began in 1976, according to the Missouri Economic Research and Information Center.

Even though the price per gallon of gasoline is 22% higher than last year, according to AAA Gas Prices, prices are down 25% ($1.20 a gallon) over the past two months, falling from a high of $4.68 on June 16 to Friday’s price of $3.48. The national price for a gallon of unleaded today was $3.91.

Joplin had the lowest price in Missouri for a gallon of unleaded at $3.31, and Jefferson City was the highest in the state at $3.69.

Republican Gov. Mike Parson will provide details on Monday of a special legislative session on expanding farm tax credits and reducing state income taxes. His schedule for next week includes stops in St. Joseph, Kansas City, St. Louis, Columbia, Kirksville and Springfield to promote his program for the special session.

Parson has been posting photos of tax cut meetings with Republican members of the House of Representatives on social media in recent weeks. He also met with Senate Democratic leaders.

Parson vetoed House Bill 2090a $500 million tax refund on July 1. It was designed to provide a one-time tax refund of $500 for individuals earning less than $150,000 per year and $1,000 for co-filers earning less than $300,000 per year.

“…this proposal does little to help the lowest income individuals and families in the state, including those on fixed incomes such as the disabled, retirees, and Social Security recipients. “, wrote Parson in his letter of veto. “I am committed to substantial tax relief for all Missourians.”

Parson proposes reducing the state income tax rate from 5.4% to 4.8% for most taxpayers.

The Missouri Administration Office reported July general revenue increased 38.3% from July 2021, from $701.3 million to $970.3 million.

Personal income tax collections in July rose 42.3%, from $480.5 million last July to $684 million last month. Sales and use taxes rose 16.9% from $212.5 million last July to $248.5 million last month.

The state’s unemployment rate fell three-tenths of a percentage point from June and is down from 4.3% last July.

Missouri’s labor force participation rate, defined as the percentage of the population that is working or actively seeking work, was 62.9% in July, up two-tenths of a percentage point from June but down six tenths of a point compared to last July. . The national participation rate was 62.1% in July.

Non-farm payroll employment in Missouri increased by 24,800 jobs from June to July. Private sector jobs increased by 10,500 and government jobs increased by 14,300. In-state employment increased by 52,500 from last July.

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