Tax Cuts

Marshall Griffin/St. Louis Public Radio

Governor Jay Nixon (D) delivered a mixed report card Friday on the state budget and other bills passed by the Republican-controlled Missouri General Assembly this week.

While he complimented lawmakers for increasing funding for K-12 schools and higher education, he also criticized them for passing legislation that would cut state income tax rates for individuals and corporations.  He told reporters that the bill would gut state revenues by more than $800 million.

Flickr | jimbowen0306)

A proposal to cut state income taxes in Missouri for both individuals and businesses is on its way to Governor Jay Nixon (D).

Marshall Griffin/St. Louis Public Radio

Republicans in the Missouri Senate have scaled back a proposal to cut state taxes in order to emulate tax cuts in neighboring Kansas and Oklahoma.

Governor Jay Nixon (D) has strongly objected to the bill's sales tax hike, saying it would hurt the poor and elderly the most.  That provision has been dropped.  House Bill 253 would now cut the personal income tax rate by half a percentage point and the corporate rate by three points, and phase them both in over the next 10 years.  Republican Will Kraus of Lee’s Summit is handling the measure in the Senate.

Marshall Griffin/St. Louis Public Radio

The Missouri House has passed a Senate bill that would overhaul the state’s income and sales taxes, but not before making a few changes.

Marshall Griffin/St. Louis Public Radio

Legislation that would cut Missouri’s income tax while raising the sales tax was examined today by a State House committee.

UPI/Bill Greenblatt

The Missouri Senate has given first-round approval to a phased-in tax overhaul designed to help the Show-Me State compete with neighboring Kansas, which recently slashed its tax rates.

Senate Bill 26 would lower state income taxes for individuals and corporations by three-quarters of a percentage point while raising the state sales tax by half a point.  Both would be phased in over a five-year period.  State Senator Will Kraus (R, Lee’s Summit) says it would result in a revenue loss of around $450 million a year.

Marshall Griffin/St. Louis Public Radio

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.

(via Flickr/jglazer75)

Updated 3:47 p.m.:

A package of tax breaks for Illinois businesses made it through a legislative committee despite major concerns by lawmakers.

The House Revenue Committee approved the measure 6-0 Monday. But two important legislators said they may oppose the bill when it comes up on the House floor.

The package would cost state government about $250 million a year. That's down from $850 million in an earlier proposal.

St. Louis Public Radio

Often tax legislation is a little bit muddled. We try to break down Obama's latest for you and let you know what your U.S. Senators, Kit Bond and Claire McCaskill, think as they go to vote on the bill.

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