Reforming Missouri’s Corporate Tax Code
A hefty corporate income tax is an obstacle to economic growth. A low corporate tax rate, on the other hand, can incentivize business activity. Under the United States’ market-based economy, each individual state and region is in competition to be the most hospitable to companies looking to expand. In this analogy, businesses are potential investors seeking a solid return on their dollar. States want to appear amenable to these investors, as the promise of business activity is accompanied by more jobs for residents, new taxation revenue for governments and additional goods and services for customers to enjoy.
A new proposal under consideration by the Missouri General Assembly would lower the state’s corporate income tax, thereby encouraging further economic growth beneficial to all Missourians. Senate Bill 674 cuts the corporate income tax by almost half, taking it from 6.25 percent down to 3.5 percent. It also makes the tax code more efficient, eliminating loopholes and putting all businesses on an equal playing field. By doing away with these unnecessary provisions, the bill manages to lower taxes without blowing a hole in the state’s operating budget. It’s a responsible and measured approach, addressing the specific needs of our state.
The Senate has already given its approval to Senate Bill 674. With a vote of 28 to 4, the measure passed by a wide margin. That level of support is no accident; lawmakers of all political ideologies agree Missouri needs to be more competitive if we are to grow the state economy. Senate Bill 674 now heads to the House of Representatives for further discussion. I hope to see it advance through the rest of the legislative process.
As always, please feel free to call, email or write with your ideas or concerns. My Capitol office number is (573) 751-1415, my email is dan.hegeman@senate.mo.gov and my mailing address is Room 332, State Capitol Building, Jefferson City, MO 65101.