Associated Industries of Missouri Asks Senate To Cut Business Income Taxes in Half
February 23 – Yesterday, the Senate Jobs, Economic Development & Local Government Committee heard testimony on a bill that takes a step toward AIM’s goal to cut business income taxes in half over five years.
The bill, SB 661, sponsored by Committee Chairman Senator Eric Schmitt, would phase in a 25% cut in the income taxes paid by businesses over five years. Associated Industries of Missouri asked Senator Schmitt and the Committee to consider reducing the taxes by 50% in the same manner as our priority legislation, HB 1639 filed by Representative Jerry Nolte in the Missouri House. The House bill would reduce taxes by 30% over three years and compare income tax receipts at that time with current income tax receipts. If the tax receipts after three years are the same or greater than current tax receipts, the taxes would be lowered by 40% and 50% over the next two years. The tax cut would apply to ALL businesses, regardless of size or type of organization. Individuals that report income from S Corporations, LLC’s, LLP’s, partnerships and sole proprietorships would also enjoy the reduction. During testimony, Senator Schmitt pointed out that when the legislature reduced the franchise tax rate, the state actually collected more money from the tax and AIM president Ray McCarty echoed those sentiments during testimony.
Associated Industries of Missouri and the NFIB were the only statewide business organizations to support the bill and there was no opposition expressed to the Committee.