ATR Supports Tax Cut Legislation in Missouri
Grover Norquist, President of ATR, sent a letter to legislators in Missouri today voicing support for several pieces of legislation currently pending before the General Assembly. HB 1253 would reduce the corporate income tax rate over a five year period to 3.125%, compared to its current rate of 6.25%. HB 1295 would lower the individual income tax rate to 5%, from its current 6% rate, contingent on certain revenue targets being met. The text of the letter is as follows:
Dear Members of the Missouri General Assembly,
I write today in strong support of HB 1253 and HB 1295, pieces of legislation which would reduce the tax burden on hardworking Missourians. HB 1253 would gradually reduce the corporate tax rate over the next several years, whereas HB 1295 would reduce the individual income tax rate.
Currently, Missouri assesses a 6.25% tax rate on corporations. HB 1253 would bring this rate down to 3.125% by 2018, representing a tax cut, when fully phased in, of $347 million. In addition, this legislation includes a 50% income tax deduction for business owners on pass through income. Therefore, business owners would see an individual income tax rate cut from 6% to 3% over five years.
HB 1295 would reduce the individual income tax rate from 6% to 5% over a ten year period, contingent on increases in available state revenue. This would represent $698.6 million in tax relief not only for individuals, but for the thousands of small businesses, limited liability partnerships and S Corporations who file under the individual income tax. ATR would strongly advise combining these two pieces of legislation into one bill, so that lawmakers may pass a single, comprehensive tax relief package.
To view a complete PDF copy of the letter, click here.