Missouri Gov. Eric Greitens called Monday for 10 percent cuts in personal income tax and reductions in corporate taxes as part of what he has described as the “boldest state tax reform in America,” promising that the cost would be offset by eliminating deductions and incentives elsewhere.
Associated Industries of Missouri President and CEO Ray McCarty praised the plan to cut corporate and individual taxes.
“Lowering Missouri’s corporate income tax rate to a level that is one of the lowest in the United States will make Missouri a more attractive place to locate new and expand current operations. By also lowering the individual income tax rate, the more than 90% of businesses that report their income taxes of their individual income tax returns (sole proprietors, partnerships, LLC’s, LLP’s etc.) will also see a significant tax relief. When combined with the lower taxes provided in the federal income tax cut, this state-level income tax cut will help boost our Missouri economy and create better and higher paying jobs as job creators use the savings to invest in their capital, including human capital.”
McCarty also criticized the proposal to end the discount for filing withholding taxes on time, which they argued compensates businesses for acting as tax collectors for the state and stated that it’s still too early to tell what the net impact would be on business taxes if the policy is adopted.