83
      Wednesday
      89 / 72
      Thursday
      87 / 69
      Friday
      86 / 70

      Missouri Senate backs income tax cut, sales tax hike

      Missouri Senate backs income tax cut, sales tax hike

      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.

      component-story-more_media_horiz-v1-01
      FOLLOW US ON TWITTER