New tax cut plan debated in Missouri Senate

Missouri Senate floor

Missouri senators are considering a new tax-cut plan that includes safeguards for public school funding sought by Gov. Jay Nixon.

A revised bill put forth Wednesday by Sen. Will Kraus would cut individual income tax rates by up four-tenths of a percentage point and create a new deduction for some business income reported on individual tax returns.

It would cut the tax rate by a quarter of a percentage point if revenues rise by at least $200 million and the state fully funds public schools.

The bill would cut taxes by an additional three-twentieths of a percentage point if lawmakers limit the amount of tax credits available for the developers of low-income housing and historic buildings. A deduction for business income also would be contingent on the tax credit overhaul.