Greitens seeks 10 percent cut to Missouri income tax rate

Lester Mason
January 31, 2018

Eric Greitens is on a statewide promotional tour for what he had billed in his State of the State address as "the boldest state tax reform in America". One of them was local college student Lindsay Duede who came to protest the Greitens administration for policies it has implemented, which she said "have disproportionately affected women" in Missouri.

"That (the restriction) is really good for companies that have employees in the state of Missouri", Greitens said.

A tax cut bill passed in 2014 and set to slowly phase in over the next decade is projected to reduce Missouri's revenues by almost $250 million.

"It's a plan targeted at working families", Greitens said during a speech at the Doyle Manufacturing plant along USA 61/24, a couple of miles north of Palmyra.

Ray McCarty, president and CEO of Associated Industries of Missouri, said lowering Missouri's corporate income tax rate would make Missouri a more attractive place for opening businesses and expanding current operations. And he touted his work on pro-life issues, pointing to what he called "the special pro-life session of the legislature" last August to make sure pregnancy care centers are protected. "Because we want to send a message to the people of Missouri that if you're working hard and you're doing the best that you can to support your family if you're putting in the hours, we're going to be behind you". The Republican governor wants to cut personal income taxes from 5.9 percent to 5.3 percent.

Greitens said this tax cut would apply to all eligible people making over $9,000 per year. He also said they'll be reducing the tax rate on businesses so the state will have the second lowest tax rate in the country.

"This is a plan that rewards and incentivizes work", said Gov. Greitens.

The plan also would cut the corporate income tax rate from 6.25 percent to 4.25 percent.

Greitens also wants a Workers First tax credit. That fact has some Republicans legislators concerned that further cutting taxes could leave Missouri with the same budget shortfalls that plagued Kansas lawmakers for years.

The "timely filing discount" cost. Currently, corporations are allowed to deduct 50 percent of their federal corporate income tax from their state corporate income tax.

He also suggests phasing out, as income rises, federal income tax deductions. And he proposes streamlining the sales and use tax agreement. Greitens last week released his FY2019 budget proposal, which includes more than $68 million in cuts to higher education and slashes the budgets of several other organizations in the state.

Skeptical Democrats ask how the state can reduce taxes and revenues by such a large amount without harming the budget.

He said the tax plan would be revenue-neutral because the tax breaks for families and companies would be offset by the elimination of various tax breaks and loopholes that primarily benefit corporations.

Monday's stop in Palmyra was Greitens' first appearance in Northeast Missouri since news broke earlier this month that Greitens admitted to having an extramarital affair with his former hairdresser in 2015.

Other reports by Iphone Fresh

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