Tax cuts continue as corporation income tax cut is effective 1/1/2020
As we continue to enjoy one of the longest sustained periods of economic prosperity in American history, businesses will continue that optimism and expansion with additional money to invest as state corporation income tax cuts take effect January 1, 2020.
"Associated Industries of Missouri has worked tirelessly to reduce business taxes in Missouri," said Ray McCarty, president and CEO of Associated Industries of Missouri. "A vast majority of businesses already enjoyed state individual income tax cuts in 2019. Coupled with federal income tax cuts from 2018, these tax cuts significantly reduced the income tax burden on many businesses that pay their taxes on their individual income tax returns. Also, the business income deduction, an AIM original idea, now stands at 10% for 2019, reducing business taxes for flow-through businesses even more. This means 94% of Missouri businesses saw a total state tax reduction of 20% from 2017 to 2019," he said.
But effective January 1, 2020, Missouri corporations will finally enjoy state tax relief. Except for an initial adjustment in 1921 and a temporary reduction in 1992, Missouri corporations have never seen their corporation income tax rate reduced until now. The corporation income tax rate will be lowered from the current 6.25% to 4% - a 36% reduction.
"We thank Governor Mike Parson, former governor Eric Greitens, Senator Andrew Koenig, Senator Bill Eigel, House Speaker Elijah Haahr, Rep. John Wiemann and former Rep. Paul Curtman for their strong leadership and vision in reducing the tax burden on Missouri businesses," McCarty said. "We have seen the impact of lowering these taxes and we believe it will only get better as business leaders use their tax savings to stimulate the economy with investments and strong job creation," he said.