The sponsor of a major tax proposal in the state senate says it’s not a tax increase or a tax cut, although iti is actually both.
Senator Will Kraus’s bill cuts personal and corporate income taxes by three-fourth of a cent in equal segments for each of the next five years. It also increases the sales tax by one-half cent in the same time.
He says the bill is needed for Missouri to remain competitive with Kansas, which has enacted deep tax cuts. Kraus calls it a new tax philosophy. Kansas City Senator Jason Holsman calls it a “double bad bill.” Kraus, from Lee’s Summit, calls it “a change in philosophy”
A legislative budget analyst says the” change in philosophy” could cost the state as much as $670-million a year. Opponents say that would be on top of $800-million dollars in tax cuts enacted in the last ten years, most backed by claims they would trigger economic growth. Independence Senator Paul LeVota says the only things those cuts have produced is a state that can’t pay for the things that companies want–schools, roads, and other infrastructure.
The House gets its shot at the bill next.