Proposals to cut taxes for Missourians were given preliminary approval by the House of Representatives this week.
The bills would reduce the amount of business income taxed by 50 percent and cut the state’s corporate tax rate from 6.25 percent to 3.125 percent. Also on the table is reducing the individual income tax rate from 6 percent to 5.3 percent.
All of the proposed tax cuts would be phased in gradually over several years. The bills also contain wording that would protect important state functions, such as education, from the possibility of reduced funding. The tax cuts would only be triggered in years when there was either stable tax revenue or revenue growth.
The bills are a continuation of a discussion from last year. The Missouri Chamber of Chamber of Commerce and Industry, along with legislative leaders, has pushed for meaningful tax reduction to bolster economic development and help Missouri remain competitive with other Midwestern states which are also aggressively cutting taxes.
The Missouri General Assembly succeeded in passing a broad tax cut last year. However, it was vetoed by Gov. Jay Nixon. An attempt to override the veto during a special session narrowly failed.
This year, there are a number of proposals being considered. The Missouri Chamber continues to support broad based tax relief for Missouri businesses and all Missourians.
“The proposals we are working on this year offer aggressive tax relief to all Missourians, freeing up greater resources for businesses and individuals to invest in our economy and job creation,” said Tracy King, Missouri Chamber vice president of governmental relations. “At the same time, these bills protect our state’s important investments in areas such as education. We continue to advocate for an approach that both reduces our tax burden while providing adequate funding to help ensure our students are receiving the education they need for tomorrow’s economy.”
For more information, please contact Tracy King at email@example.com or by phone at 573-634-3511.