While some legislators meeting in capitol offices trying to find a way to plug a $500 million hole in the state budget, a state senator is trying to make a case for a $100-200-million tax cut.
The legislature cut the corporate franchise tax last year, a five-year phase-out that will mean 87-million fewer dollars to finance state programs and services. Now Kirkwood Senator Eric Schmitt wants to phase in a 25 percent small business income tax deduction..
That brings Senator Joe Keaveny out of his chair to ask, “That’s going to cut another $200 million out of the budget?” “If you assume no growth,” responds Schmitt, who says the cut is actually smaller, perhaps by as much as one-half or more. …
Schmitt says business would expand and hire more people if they could keep more of their money. “Everything we do makes Missouri more competitive,” he says.
But Keaveny wonders how much more competitive Missouri can get—and at whose expense, nothing Missouri already is rated in some studies in the top ten states in the country in business competitiveness.. “In order to make that next step up, how much is it going to cost? How much is $200 million gong to get us,” he asks.
Schmitt has set his bill aside to try to work out some things with another senator who has his doubts, too.