Mo. Senate Committee Proposes $1.1 Billion Tax Cut | St. Louis Public Radio

Mo. Senate Committee Proposes $1.1 Billion Tax Cut

Feb 25, 2013

Missouri's response to last year's big tax cuts in neighboring Kansas could carry a $1.1 billion price tag.

A Missouri Senate committee on Monday endorsed a proposal to cut the state's individual and corporate income tax rates by 1.5 percentage points. The individual rate would fall to 4.5 percent, and the corporate rate to 4.75 percent.

Senate Republicans are looking to respond to Kansas' tax cuts, which they say have caused businesses to move from Missouri across the border.

Missouri lawmakers had planned to raise the state sales tax by 2 percent to make up the revenue lost to the income tax cuts. But an amendment by Democratic Sen. Paul LeVota, of Independence, killed that proposal.