Senate Committee passes tax cut bill, but corporations not included

Thursday morning, the Senate Ways and Means Committee approved a substitute tax cut plan that would reduce Missouri income taxes for individual taxpayers and employer taxpayers that are not C corporations.

The bill would cut personal income taxes by 1% over 10 years of growth in state revenues, if such revenues are at least $100 million more than the highest amount collected in the previous three fiscal years (same “trigger” that was in tax bill last session).

The bill also provides a 50% business income deduction for flow through entities, sole proprietors, partnerships, etc., but does not include tax relief for regular C corporations. The business income deduction would also be subject to the growth “triggers”.

“AIM is pleased a tax bill is moving in this early in the legislative session and appreciates the benefits for some employers,” said Ray McCarty, president of Associated Industries of Missouri. “We will continue to work with legislators to include equivalent tax relief for all Missouri employers, regardless of size or type of business organization.”