|
|
Examiner
  • Senate panel approves income tax cut plan

    • email print
      Comment
  • JEFFERSON CITY – A Republican plan to cut Missouri income taxes for individuals and businesses won quick approval Thursday from a Senate committee, potentially putting it near the top of the list for Senate debate this year. The legislation would gradually reduce Missouri's top individual income tax rate from 6 percent to 5 percent over a decade. It also would phase in a 50 percent deduction over five years for business income reported on individual income tax returns. The incremental tax cuts could begin in 2015 but would take effect only as long as Missouri's net general revenues rose by at least $100 million over the high mark from the previous three years. Supporters said that guarantees the tax cuts would not result in plunging state revenues. "We're returning taxpayer dollars to taxpayers in a sensible, responsible way," said Sen. Will Kraus, R-Lee's Summit, the bill sponsor and chairman of the Senate Ways and Means Committee. Democratic Gov. Jay Nixon, who vetoed a tax-cut bill last year, issued a stern statement describing the new measure as "a billion dollar experiment" that would take money away from schools. "Once again the choice is clear, the General Assembly can get serious about fully funding our schools, or they can undertake fiscally irresponsible experiments with our tax code, but they cannot do both," Nixon said. Legislative researchers have estimated the bill's provisions could waive about $900 million of tax revenues annually once fully implemented. Most of that cost estimate is attributable to the individual income tax cut and the new business income deduction. But the legislation also would grant an additional $1,000 tax deduction to people with incomes below $20,000, which would not be contingent on the continued rise of state revenues.

        calendar