Jay Nixon Calls on Missouri Legislature to Pass Law Exempting Families from Paying Taxes on Federal Rebate Checks

JEFFERSON CITY, Mo -- As Congress and President Bush finalize the details of an economic stimulus package, Attorney General Jay Nixon today called on the Missouri legislature to be prepared to pass a law exempting Missourians from paying taxes on the federal rebate checks that Missourians are expected to receive soon.  Without legislative action, it is likely that Missourians would have to pay state income taxes on the rebates. 

"With unemployment on the rise and our state's economy moving backwards, Missouri families need help paying their bills, not more new taxes," Attorney General Nixon said.  "This stimulus package alone won't fix the economic downturn, but it's an important first step and Missourians must be allowed to receive its maximum benefit.  I encourage the legislature to take prompt action so that Missouri families can keep every dollar of their rebate checks during these difficult times."

Based on news reports, the package agreed upon by the President and the House of Representatives includes tax rebates of up to $600 for individuals and up to $1,200 for couples. Families receive an additional rebate of $300 per child.   Lower-income tax-payers who earned more than $3,000 last year but paid less than $300 in income taxes would also receive a payment of $300.

Attorney General Nixon believes that regular Missourians, who right now are struggling to make ends meet, deserve tax relief.  Several weeks ago, Nixon outlined his plan to provide property tax relief to more than 65,000 Missouri seniors and families struggling to keep their homes by eliminating the unfair marriage penalty and expanding the Missouri Property Tax Credit Program.