Politics
8:40 am
Thu May 9, 2013

Mo. Senate passes income tax cut to counter Kan.

The Missouri Senate has passed legislation phasing in a potential $700 million income tax cut for businesses and individuals.

The legislation approved 24-9 Wednesday by the Republican-led Senate is intended to counteract a large income tax cut that took effect this year in Kansas. The bill now goes to the House.

It would gradually cut the individual income tax by one-half of a percentage point and the corporate income tax by three percentage points over a decade. But each incremental cut would take effect only if annual revenues rise by at least $100 million.

The bill also would phase in a 50 percent deduction over the next five years for business income reported on individual taxes.

Legislative researchers estimate the bill would reduce revenues by $692 million when fully implemented.