JEFFERSON CITY, Mo. -- 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 (LOO’-ber-ing) 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.