The state senate is moving to eliminate what some senators call a double tax on business—although one senator worries about whether the state can afford the cut.
Supporters of a franchise tax repeal say it’s unfair to tax businesses on their assets and on their incomes, too. The Senate has passed Senator Eric Schmitt’s bill phasing out the corporate franchise tax during the next five years. The franchise tax is an assets tax.
Cape Girardeau Senator Jason Crowell is skeptical about the state foregoing about 17-million dollars in income each year at a time when the state is facing hundreds of milliions of dollars in funding shortfalls. His skepticism is heightened because Schmitt is proposing a new tax credit program that could cost the state 111-million dollars a year. Crowell, who favors repeal of the estate tax, says the failure to repeal that tax while phasing out the corporate franchise tas amounts to the legislature “helping Wall Street over “Main Street.” ”
Crowell says he’s reluctant to support the franchise tax phaseout until he knows what kind of problems that cut in state income is going to cause funding for education.
The bill now goes to the House.