Mo. House backs income tax cut plan

Posted by Dave Berry

JEFFERSON CITY, Mo. (AP) — The Missouri House has endorsed legislation cutting income taxes for businesses.

The bill given initial approval Wednesday in the Republican-led chamber would phase in a 50 percent deduction for business income reported on individual tax returns. It also would gradually cut Missouri’s corporate income tax rate to 3.125 percent from the current 6.25 percent.

Republican supporters contend that a tax cut for businesses could help spur the economy.

But Democratic Gov. Jay Nixon objects to the proposed business tax cut. He says he only would support an individual income tax cut, and then only if various conditions are met to protect funding for public schools.

The House gave first-round approval to the bill on a 104-48 party-line vote. A second vote is needed to send it to the Senate.

Source: Associated Press

Read more…