Debate has begun in the Missouri Senate on this year’s attempt to cut the state’s income tax rate.
Republican Will Kraus of Lee’s Summit has sponsored a bill to reduce the individual income tax rate from six percent to five percent, and to phase in a tax deduction on an individual’s business income of 50 percent. Kraus debated the potential effects of the bill with Democrat Paul LeVota of Independence on the Senate floor Tuesday:
“I believe that (it) would improve the growth of our state by growing our economy, and that would improve our GDP…can I tell you how much? No," Krause said. LeVota responded, “Right, and that’s the problem, Senator, that’s the crux of the problem…there’s a group of people that say (that) this type of tax cut will harm our services."
The bill was set aside after about 90 minutes of debate, and a spokesperson indicated that they may spend more than a week on it before pushing for first-round approval.
A similar tax cut bill in the House has already passed through two committees and is currently awaiting floor debate.
Democratic Governor Jay Nixon vetoed last year’s attempt at cutting Missouri’s tax rate and has spoken out against this year’s attempts as well, saying it would gut education funding.