At a time when the state is facing a half-billion dollar funding shortfall, the legislature is moving quickly to limit or eliminate a tax that produces 85-million dollars a year.  But lawmakers say it would be good for business.

The corporate franchise tax has been a target for years.  Corporations with more than ten million dollars in assets pay one-thirtieth of one percent tax on those assets.

Proposals at the capitol either would limit the total tax for any one corporation to two-million dollars a year or would gradually repeal the tax during the next five years.

Senator Eric Schmitt of Glendale says it’s bad for business–which already pays a sales tax and an income tax as well as property taxes.  He calls it a “disincentive” for investment in Missouri. 

A spokesman for an industrial association has told a senate committee it is time to “control, torture, or kill” the tax. 

Legislative committees in both chambers are reviewing the proposal.

 Schmitt takes his bills before a senate committee 2:46 mp3

AIM’s Ray McCarty wants the tax gone 2:17 mp3