GOP senator looks to cut Missouri corporate income tax rate
by Dick Aldrich
The same state Senator who sponsored last year’s repeal of the Missouri’s corporate franchise tax is looking to cut corporate taxes even more.
Senate Bill 661, from St. Louis area Republican Eric Schmitt, would reduce the corporate income tax rate from 6 1/4 percent to 3 1/8 percent over five years. Schmitt’s bill would put Missouri’s rate among the lowest non-bracketed state income tax rates in the country.
Unlike the repeal of the corporate franchise tax last year, Schmitt says reducing the income tax rate would help small business in addition to larger corporations.
“As far as the small (businesses) – the LLCs, the LLPs, the family businesses - we’ve had a hard time dealing in how to provide tax relief to them,” Schmitt said.
Critics of the bill question the wisdom of shrinking a main source of state government revenue during an ongoing budget crisis. Once the phase out is fully implemented, it’s estimated that it would cost the state more than $100 million in revenue annually. That’s roughly 20 percent of the current estimated budget shortfall facing the state government in 2013.
The bill is slated to come up for debate on the Senate floor in the coming weeks.