Associated Industries of Missouri president Ray McCarty today told the Missouri House of Representatives’ Ways and Means Committee today that House Bill 1253 is the type of responsible tax relief that is needed in Missouri.
The bill, sponsored by Rep. 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 tax deduction over the same period and subject to the same conditions as the corporation income tax rate cut. The deduction would provide the same benefit as the corporate tax cut for S-corporations, partnerships, LLCs, and all other classes of business.
For both cuts, if the employer has average payroll of at least 150% of county average wage, a 50 percent tax cut is immediate.
“AIM and TRIM fully support this bill as it provides equal tax benefit to ALL Missouri employers, regardless of size or type of organization and helps existing employers as it increases our ability to compete for new employers and the jobs they provide,” said McCarty during his testimony before the committee.