Ray McCarty, president of Associated Industries of Missouri testified Tuesday in favor of three bills that would lessen the tax burden on Missouri businesses.
The biggest of the three is House Bill 1031, sponsored by Rep. Mark Parkinson (R-St. Charles). It seeks to eliminate the income tax on corporations by January 1, 2014. According to a fiscal analysis released with the bill, Missouri corporations would save about $384 million in taxes by fiscal year 2015.
“It has long been our contention that lowering the tax burden on business will lead to economic growth,” said McCarty. “This is a forward thinking piece of legislation and we thank Rep. Parkinson for having the courage to introduce it.”
McCarty also appeared before the House Economic Development Committee in support of House Bill 827 and the House Ways and Means Committee on House Bill 1029.
House Bill 827, sponsored by Rep. Dave Hinson (R-St. Clair), authorizes a sales and use tax exemption for any products used in the calibrating and installing of machinery and equipment exempt from sales and use taxes, and a sales and use tax exemption for any products used in the production of food.
House Bill 1029, sponsored by Rep. Eric Burlison (R-Springfield), provides an alternative method for calculating the Missouri taxable income of the interstate income of a corporation. The bill would allow a corporation to determine its Missouri taxable income by dividing the in-this-state sales by the total amount of sales and multiplying this fraction by the net income of the corporation. A sale is in-this-state if the purchaser’s destination point is in Missouri.
“These bills each on their own will not result in a revenue windfall for Missouri business,” said McCarty. “But they are more tools to lessen the tax burden and allow businesses to grow and prosper for the good of the state’s economy.”
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