Missouri House approves plan to cut taxes, raise certain fees

Overshadowed amidst Tuesday’s furor over Gov. Eric Greitens, the Missouri House has approved a plan to reduce the state’s tax rates.

The proposal, approved late Tuesday night, would cut the corporate and top individual income tax rates to 5 percent, and it would increase motor vehicle fees in lieu of raising the state’s fuel tax.

The plan passed after a new financial impact analysis showed the cut would result in narrower losses than initially estimated. An early estimate said the bill would lower general revenue by $1 billion over the next three years and add more than $584 million to other state funds. New estimates revised those figures to $397 million and $484 million, respectively.

However, the bill faces a potentially hostile reception in the Senate, where leadership has already expressed concerns about it.

The House bill, proposed by Rep. Elijah Haahr-R, Springfield, differs from a recently approved Senate tax plan in a couple of key ways. Among those: the 5 percent tax rate for corporations and top individual earners, as compared to 5.25 percent in the Senate proposal.

The measure, HB 2540, passed Tuesday by a 91-61 vote, with all present Democrats and 17 Republicans voting against it.

Some Democrats suggested Republicans were using the distraction of Greitens to pass momentous legislation with limited public scrutiny.

Read more: Columbia Missourian, St. Louis Post-Dispatch

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