Sen. Schmitt’s bill to double tax cut heard in Senate committee

The Senate Ways and Means Committee today heard SB 574, sponsored by Sen. Eric Schmitt – a bill that would double the tax cut hard fought by AIM and other business groups.

The bill would actually restore the full amount of business income deduction that was originally filed by Sen. Schmitt, prior to that deduction’s inclusion in a larger tax bill that also reduced the personal income tax rate. That bill, though vetoed by Governor Jay Nixon, was the subject of an intense lobbying effort and eventual veto override, led by Associated Industries of Missouri, NFIB, and other employer organizations.

The business income was an original AIM Tax Committee idea, brought about after conversations with Bennett Packaging, an AIM member that pointed out something should be done for flow-through entities, such as S corporations. Kansas completely exempts such income from income tax.