Senate Committee Approves AIM Tax Cut Bill
February 25 – The Senate Ways and Means Committee, chaired by Senator Will Kraus, rolled AIM’s Broad Based Tax Relief Act into a tax reduction package and approved the bill for further consideration by the full Missouri Senate.
AIM’s tax cut proposal was originally filed by Senator Eric Schmitt as SB 11 and would have cut state income taxes for every Missouri business in half over 5 years. The package would reduce corporation income taxes by 1.5% beginning with the 2014 tax year. S corporations, partnerships, LLC’s, sole proprietors, and other business entities in which the tax liability flows through to the owners, partners or shareholders, would be entitled to a “business income deduction” of 10% beginning in 2014, 20% in 2015, 30% in 2016, 40% in 2017, and 50% in 2018 and future tax years. In addition, the rate paid on taxes reported on individual income tax returns (including these types of business entities) would be reduced by 1.5% to 4.5% and the proposal would apply that tax rate to all income over $6,000. Currently, individual income taxpayers must pay 6% on all amounts above $9,000.
“Associated Industries is proud of the hard work of Senator Schmitt and Senator Kraus to improve the tax burden on every Missouri employer,” said Ray McCarty, president of AIM. “This broad based tax relief bill represents the best kind of economic development as it applies to every business, including those already located in Missouri and those that decide to make Missouri their home.”
The new combined bill is SCS SB’s 26, 11 and 31. Click here for details and stay tuned for further updates as the Senate considers the tax cut package.