A Missouri public policy group says changes in tax laws are responsible for the state’s current budget problems.
The Missouri Budget Project, a public policy group that calls itself an advocate for the state’s “most vulnerable families,” claims tax breaks passed last year, but not accounted for in the current year’s revenue estimates, are part of the problem. The group’s Traci Gleason says another issue is the way corporate taxes are calculated.
Laws passed in 2013 and 2015 made changes which allowed multi-state corporations to adjust their distribution of profits and reduce their tax liability in Missouri. The Missouri Budget Project pegs the state loss resulting from the corporate tax adjustment at $155 million.
The group also claims lawmakers failed to account for tax cuts they passed in 2016 that are being felt in the current fiscal year.
The Missouri Budget Project predicts between $200 and $250 million will need to be sliced from spending between now and the end of June, unless tax collections grow far above the current projected rate of roughly 3.4 percent over last year.
Read more: Missourinet