A proposal to cut state income taxes in Missouri for both individuals and businesses is on its way to Governor Jay Nixon (D).
House Bill 253 would reduce the personal income tax rate by half a percentage point and the corporate rate by three points. Both would be phased in over the next 10 years, instead of five as originally proposed. State Representative Andrew Koenig (R, Winchester) spoke in favor of the bill shortly before the House passed it Thursday.
"In order for Missouri to remain competitive, we need to reduce our income tax," Koenig said. "Along our border states, we have Kansas and Oklahoma that are committed to reducing the tax on production -- we have Tennessee that we border with, that has no income tax."
State Representative Jon Carpenter (D, Kansas City) called the bill "a budget-busting tax reform plan" that would cost the state up to $900 million. The measure originally contained a sales tax hike, but that provision was removed by the Senate before passing that chamber on Wednesday.
Follow Marshall Griffin on Twitter: @MarshallGReport
