The state senate thinks supply-side economics is one of the keys to Missouri’s economic development.
The senate has advanced the repeal of the franchise tax, which is called a “double tax” by those wanting to repeal it. The franchise tax is based on a company’s assets. Critics of it say it’s not fair to tax assets and also tax corporate income.
Sponsor Eric Schmitt of Glendale wants to phase out the franchise tax in the next five years. The tax brings in about 85 million dollars a year now. Senator Robin Wright-ones of St. Louis worries about the impact on a state budget that already is tight.
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He hopes eliminating the franchise tax here will make Missouri attractive to a lot of businesses in Illinois, which has a franchise tax and has increased corporate income taxes to plug a multi-billion dollar hole in its budget.