Yesterday the Missouri House debated and passed legislation that would free up nearly $1 billion for job creation and expansion by a vote of 90-68. The Missouri House passed Senate Bill 26, sponsored by Sen. Will Kraus, legislation that would phase in over five years a 50 percent tax deduction for all businesses.
“Lawmakers are cutting the costs of doing business and it is making Missouri a better place to live and work,” said Missouri Chamber President and CEO Daniel P. Mehan. “They have taken a bold step, initiating the largest tax cut for Missouri businesses in history. Lawmakers have sent a strong message to our employers: We believe that growing jobs will grow our economy and we are willing to back that claim with real tax relief.”
The legislation was designed to counter other economic development moves taken by neighboring states to lure businesses. During floor debate, supporters of the bill pointed to states like Kansas, Oklahoma and Tennessee that are outpacing Missouri in job growth.
“The states that are doing the right thing are the states that are expanding, states that don’t tax productivity,” said Mehan.
The tax relief is offset by an increase in the sales tax rate by 3/5th of a percent over five years. The bill also contains a provision to capture outstanding tax debt by providing tax amnesty. The bill also contains a provision that allows Missouri to take steps toward taxing Internet sales.
The bill was amended on the floor to include a provision that would dedicate funding to education.
The bill now moves to the Senate where it can be given final approval and sent to the governor for his signature.