Missouri lawmakers propose cut in tax rates

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by KMOV.com Staff

KMOV.com

Posted on February 25, 2013 at 11:52 PM

Updated Tuesday, Feb 26 at 12:00 AM

JEFFERSON CITY, Mo. (AP) -- Missouri’s response to last year’s big tax cuts in neighboring Kansas could carry a $1.1 billion price tag.

A Missouri Senate committee on Monday endorsed a proposal to cut the state’s individual and corporate income tax rates by 1.5 percentage points. The individual rate would fall to 4.5 percent, and the corporate rate to 4.75 percent.

Senate Republicans are looking to respond to Kansas’ tax cuts, which they say have caused businesses to move from Missouri across the border.

Missouri lawmakers had planned to raise the state sales tax by 2 percent to make up the revenue lost to the income tax cuts. But an amendment by Democratic Sen. Paul LeVota, of Independence, killed that proposal.

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