Legislation that would cut Missouri’s corporate income tax rate could be voted on later this week by the House Ways and Means Committee in Jefferson City.
State Sen. Andrew Koenig, R-Manchester, testified Monday before the committee. His bill would reduce Missouri’s corporate income tax rate from 6.25 to 3.5 percent.
“I believe this will make our state more competitive, giving us the second lowest rate in the country,” Koenig testifies.
North Carolina has the lowest corporate income tax rate in the nation, at three percent. There are five states without a corporate income tax.
Koenig notes there are several other tax reform bills, in both the Missouri House and Senate. The Manchester Republican says his bill has Democratic support.
“Although we have the large tax proposals that are moving forward, I think it’s important to get something done that can actually pass,” says Koenig. “This bill passed out of the Senate 28-4 on a bipartisan basis.”
Koenig’s bill would cut Missouri’s corporate income tax rate to the 3.5 percent mark, starting in January 2019.
House Speaker Pro Tem Elijah Haahr, R-Springfield, has legislation that would reduce Missouri’s corporate income tax from 6.25 to five percent.
Haahr’s bill, however, includes about $174 million for the state’s road fund, by indexing vehicle user fees to the cost of inflation.
The Missouri House has approved Haahr’s bill 91-61, and Haahr is scheduled to present his bill and testify Tuesday morning at 9 before the Senate Ways and Means Committee.
Meantime, Missouri House Ways and Means Committee Chairman Paul Curtman, R-Pacific, wants to give his committee members time to study the merits of Senator Koenig’s bill.
“Certainly, as per his (Senator Koenig’s) testimony, and I think the prevailing thought in the General Assembly is that less taxes to be collected and be spent by the government certainly helps our economy thrive because it leads more money into the economy,” Curtman says.
Chairman Curtman spoke to Missourinet after Monday’s hearing. He says the committee will review Koenig’s bill to see if it needs to be adjusted, to ensure they can get it to Governor Eric Greitens’ (R) desk.
Click here to listen to the full interview between Missourinet’s Brian Hauswirth and Missouri House Ways and Means Committee Chairman Paul Curtman, R-Pacific, which was recorded on April 30, 2018 at the Statehouse in Jefferson City: