January 28, 2020 - Today the Senate Ways and Means Committee heard SB 640, sponsored by Sen. Bob Onder, that would double the rate at which income tax rates are cut and double the allowable business income deduction.
The cuts would only occur if triggers in existing law were met.
AIM president and CEO Ray McCarty explained the business income deduction was an idea that came from one of AIM's members, Bennett Packaging in the Kansas City area. By the time Missouri adopted the concept, two other states had adopted similar provisions and eventually the deduction was included in federal tax cut legislation.
"The business income deduction helps prevent inappropriate taxation of the 92% of businesses that report their business income on their individual income tax returns," McCarty said.
No action was taken on the bill in the hearing, although a vote may be expected soon.