Schmitt Offers Economic Growth Package Reducing Taxes for Workers, Small Businesses

JEFFERSON CITY - State Senator Eric Schmitt, R-Glendale filed legislation that would reduce the tax burden on Missouri workers and small businessmen and women, allowing that income to be reinvested in our economy through consumer spending and business growth.

Senator Schmitt’s legislation would reduce taxes for hardworking Missourians down to a maximum rate of 5 percent. Additionally, the legislation would allow small businesses to deduct 50 percent of their business income. Both provisions would be phased in over time, beginning in 2017.

“While Missouri continues to see sluggish growth, our neighboring states are taking proactive steps to encourage economic expansion and a thriving small business sector,” Schmitt said. “We need to continue reforming our tax code so that individuals keep more of their hard-earned money, and small businesses, the backbone of our economy, continue to grow. Our reform is practical, responsible and necessary to get our economy back on the right track.”

The bill phases in the reductions over a period of time, following the model of tax reductions passed in 2014. The bill also has safeguards that ensure the Senate can address some of its top legislative priorities, specifically education and the state’s safety net for our most vulnerable individuals and those living in poverty who are unable to work.