Missouri Senate gives initial OK to tax cut plan

The Missouri Senate gave initial approval Wednesday to what has been described as the largest tax cut in state history. The plan would lower the state’s income tax to 5.25 percent, down from 5.9 percent, with the possibility of additional reductions in later years. It would cut the state’s corporate tax rate to 5.25 percent, from the current 6.25 percent.

Other key points of the plan include:

  • Ending federal individual and corporate tax deductions to offset the cuts
  • Initiating the collection of sales taxes from online purchases
  • Increasing the state’s fuel tax by 10 cents over eight years

Potential obstacles remain to the plan winning final approval, including reluctance by lawmakers to further lower taxes and pushback form certain interest groups.

Read more: St. Louis Post-Dispatch

Tags:, , , ,

Leave a Reply