A plan to keep corporations from making money in Missouri and shipping it to other states to avoid paying taxes here – the so-called Geoffrey Loopphole – passes the House, though there remains a dispute about whether it will really accomplish anything. House Speaker Catherine Hanaway sticks to her insistence that the bill, approved along party-lines, will resolve the issue raised by Governor Bob Holden, who says a loophole in the Missouri corporate tax structure allows businesses to avoid state taxes by paying huge franchise fees to headquarters in other states. Republican legislative leaders have hesitated to predict their fix would bring in any additional revenue to the state – a stance Hanaway maintains after the vote was taken. The Holden Administration opposes the plan. State Budget Director Linda Luebbering says the Governor hopes to amend the proposal when it reaches the Senate. She says, as is, the bill would cost the state, claiming it would broaden the loophole, making more companies eligible.
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