House passes broad-based business tax cut
The Missouri House Thursday gave final approval to AIM-supported legislation that will decrease state taxes on all businesses.
On a strict party line vote (Republicans voting for the bill, Democrats against) the Missouri House voted 106-49 to advance House Bill 1253 to the State Senate. The bill sponsored by T.J. Berry (R-Kearney) would reduce Missouri’s corporation income rate beginning in the 2014 tax year if net individual and corporation income tax revenues are at least FY 2012 levels. Over five years of growth, the corporation income tax rate would be cut in half.
The bill also provides a 10%-50% business income deduction over the same period and subject to the same conditions as the corporation income tax rate cut.
FOR BOTH CUTS, if the employer has average payroll of at least 150% of county average wage, 50% tax cut is immediate.
On the House floor, Berry underlined that tax cuts for businesses spur growth in state economies. He said it’s the kind of stimulus Missouri’s economy needs.
“If you think we operate in a static environment, we don’t, things change around us, history moves by,” said Berry. “The question is…is Missouri going to move, or is everything just going to pass us by?”
Rep. Jay Barnes (R-Jefferson City) highlighted the success stories of growth from bordering states such as Kansas and Oklahoma and Tennessee where aggressive tax policies have resulted in growing economies.
“This is exactly the type of thing we ought to be doing,” Barnes told House colleagues. “It encourages every single business in the state to expand. It encourages people to take that risk, start that small business that might grow into a medium business, that might grow into a big business employing thousands of people.”