The "fiscal cliff", referring to the end of the Bush tax cuts and cuts in spending starting in 2013, could decrease funding to Missouri education according to lawmakers.
Wrap: Missouri allows a 6 percent deduction in state income taxes for federal income taxes paid with a cap of 5,000 dollars.
Democratic Columbia Representative Chris Kelly says this is an unavoidable problem for Missouri.
|Description: "Were one of the few states that do it. It's certainly a disadvantage for us."|
Republican St Louis Senator Jim Lembke says Missourians should be able to deduct 100 percent of their federal taxes.
Republican St. Joseph Senator Robert Schaaf says education would take the biggest hit in funding if Missouri lost revenue.
|Description: "Any time there's a big cut that we have to deal with, there's just not a lot of room to cut other stuff."|
Reporting from the Capitol, I'm Brendan Cullerton.
While federal income taxes are posed to increase in 2013, Missouri could actually lose state revenue because of the "fiscal cliff", or the end of the Bush tax cuts and a series of spending cuts."
Wrap: Missouri allows state income tax payers a 6 percent deduction for any federal income taxes paid with a 5,000 cap for individuals, and the "fiscal cliff" would increase that amount.
Republican St. Joseph Senator Robert Schaaf says this small deduction would add up in the long run.
|Description: "It could be a significant number. I mean six percent of a large number can be a very large number."|
Budget director Linda Luebbering says Missouri would gain revenue from other areas, like gross domestic income, if federal taxes aren't lowered, and these other factors could offset the loss from deductions.
Reporting from the Capitol, I'm Brendan Cullerton
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