Do you prefer to pay income taxes or sales taxes? Missouri voters will get to choose in a unique ballot question later this year. A proposed constitutional amendment will give people the option of gradually eliminating the individual income tax in exchange for the possibility that lawmakers could expand the sales tax to more services. This marks the first time a U.S. state legislature has asked voters to make such a choice. Kentucky, Mississippi and Oklahoma also recently passed laws that could phase out their income tax if revenue benchmarks are met. But those didn't go to voters.
Lawmakers across the U.S. will be debating whether to adopt new federal tax breaks for tips, overtime and business expenses. The Trump administration is urging states to follow its lead by applying the federal tax cuts to state income taxes. But that decision varies by state. In some places, the tax breaks automatically apply unless legislatures opt out. In others, they won't occur unless legislatures opt in. States embracing all of President Donald Trump's tax cuts could offer significant savings to taxpayers but may also face financial strain. So far, only a few states have voted on these tax breaks, with Michigan being the first to opt in for tips and overtime.
Rumors spreading on social media claim the U.S. government will soon be issuing stimulus checks to taxpayers in certain income brackets. But for now it's only wishful thinking. Congress has not passed legislation to authorize such payments. And the IRS says no new stimulus checks will be distributed in the coming weeks. Republican Sen. Josh Hawley of Missouri last month introduced a bill that would send tax rebates to qualified taxpayers using revenue from tariffs instituted by President Donald Trump. Hawley's bill has not passed the Senate or the House.
