The Missouri Senate’s Ways and Means Committee voted Tuesday to pass tax reform legislation out of committee.
The measure, proposed by Sen. Bill Eigel, R-Weldon Springs, will compete with an $800 million tax proposal touted by Republican Gov. Eric Greitens. The Senate plan calls for the income tax rate most Missourians pay to be reduced to 5.25 percent, down from 5.9 percent. It would also lower the corporate tax rate to 4.25 percent from 6.25 percent.
A provision would allow for four additional cuts triggered by revenue increases of $150 million over previous years. The income tax rate would bottom out at 4.8 percent.
The plan would allow low-income people to claim a tax credit equal to 10 percent of their federal earned income tax credit.
The Senate plan calls for 6-cent motor fuel tax to be phased in over three years, which is a major departure from the Greitens’ proposal. Greitens has stated he opposes the fuel tax.
The Senate proposal and Greitens’ tax plan have been criticized by both sides of the aisle, but particularly by Democrats, who say lowering taxes while the state is having to make spending cuts is irresponsible.