States tapping federal pandemic aid, historic surpluses for tax cuts and rebates

Georgia Gov. Brian Kemp speaks during a Get Out the Vote Rally, on May 23, 2022, in Kennesaw, Ga. (AP Photo/Brynn Anderson, File)

Stoked by the largest surplus in state history, Missouri’s Republican-led Legislature devised a $500 million plan to send one-time tax refunds to millions of households. In a shock to some, GOP Gov. Mike Parson vetoed it.\

Parson’s objection: He wanted a bigger, longer-lasting tax cut.

“Now is the time for the largest income tax cut in our state’s history,” Parson declared as he called lawmakers back for a September special session to consider a $700 million permanent tax reduction.