(JEFFERSON CITY, Mo., AP) — Missouri’s finances could take a $60 million annual hit because of a recent 2 percentage point increase in federal Social Security payroll taxes.
State budget director Linda Luebbering says the lost revenues resulting from the federal Social Security tax already had been taken into consideration for budget projections. She says the reduced revenue should not come as a surprise to state officials.
The Social Security tax reverted to 6.2 percent this month after the expiration of a 2 percentage point cut that had been in place for a couple of years.
A rise in federal taxes results in a decrease in state taxes, because people can claim their federal taxes as a deduction on their state income tax forms.