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3:40 pm
Wed March 6, 2013

Mo. senator rolls out new tax overhaul proposal

A Missouri senator is rolling out a new proposal to overhaul the state's taxes in an effort to keep pace with neighboring states such as Kansas.

A proposal expected to be debated Wednesday in the Senate would gradually reduce the state's income tax rate by 1 percent over five years while gradually increasing the state sales tax by one-half percent over that same period.

The plan by Republican Sen. Will Kraus, of Lee's Summit, is estimated by his office to result in a roughly $600 million state tax reduction once fully phased in.

In addition to an overall income tax cut for individuals and businesses, the plan includes an extra tax reduction for lower-income residents. It also attempts to collect taxes from more Internet sales.