Missouri Senate backs income tax cut, sales tax hike
Thu, 07 Mar 2013 11:24:55 GMT —
The Missouri Senate has endorsed a massive tax overhaul intended to keep pace with recent tax cuts in neighboring Kansas.
Senators gave preliminary approval Wednesday to legislation that would phase in a three-quarters of a percentage point cut in state income tax rates for individuals and businesses over the next five years.
It also would gradually raise the state sales tax by one-half of a percentage point over that same time.
The plan includes an additional income tax cut for low-income residents, and it seeks to boost tax collections from Internet sales and some out-of-state retailers.
Sponsoring Senator Will Kraus, a Republican from Lee's Summit says the legislation could reduce state revenues by about $450 million when fully implemented.
Some Democrats warned it could jeopardize future funding for schools.