Associated Industries of Missouri this week spoke in favor of another broad-based tax cutting proposal this week during a hearing by the House Ways and Means Committee.
House Bill 1453, sponsored by House Speaker Pro Tem Rep. Denny Hoskins (R-Warrensburg) would reduce Missouri’s corporation income tax rate by 1% and the individual tax rate by 1% over a period of ten years in which state revenues exceed the highest amount of the previous three fiscal years by at least $200 million.
The bill also provides a 5% – 50% business income tax deduction over the same period and subject to the same conditions as the individual and corporation income tax rate cut.
A twist to HB 1453 is that the bill requires 40% of the amount of the excess revenues above $200 million to be deposited in the School District Trust Fund and 20% would be allocated to higher education, until the Pubic School Foundation Formula is fully funded.
“Last year concerns were raised about tax cut bills and the effect they would have on General Revenue in the state as well as on education,” wrote Rep. Hoskins in his weekly report to constituents. “I have done my best to address those concerns with this bill.”
While AIM prefers tax cutting legislation with fewer requirements, such as House Bill 1253, president Ray McCarty says AIM supports HB 1453.
“While we prefer the accelerated cuts in HB 1253, AIM and TRIM support this bill as it provides tax benefit to ALL Missouri employers, regardless of size or type of organization,” McCarty told the committee. “This bill also helps existing employers as it increases our ability to compete for new employers and the jobs they provide.”
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