Section 13 Post-War Development of Tax Law

• Library: Tax Law 2009

Although the original Missouri income tax system tended to reflect the same rules as the federal system in many respects, changes in the federal system required separate legislation in Missouri. Thus, legislation was passed:

• in 1947, to permit

• certain charitable contribution deductions

• deductions for medical expenses in excess of five percent of adjusted gross income; and

• a deduction for alimony paid

• in 1951, to allow a $500 standard deduction in lieu of itemizing; and

• in 1953, to provide for a 50% exclusion on long-term capital gains and losses

But the process was greatly simplified as of January 1, 1974, when Missouri income tax law was revised to make federal taxable income the starting point for the computation of Missouri taxable income. This has not entirely eliminated problems. For...