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Missouri senator pushes for business tax cut, deduction

Monday, April 2, 2012 | 10:10 a.m. CDT; updated 10:15 p.m. CDT, Tuesday, April 3, 2012

JEFFERSON CITY — Missouri businesses and businesses owners could start paying less in taxes under a bill moving through the state Senate.

A measure sponsored by St. Louis County Republican Eric Schmitt would cut the state's corporate income tax in half over five years, starting in the 2012 tax year. By 2016, the rate would fall to 3 1/8 percent from the current 6 1/4 percent.

Schmitt also wants to let individuals deduct business income from their individual taxes. By 2015, his bill would allow people to deduct 25 percent of their business income from their individual taxes.

Schmitt's bill has been endorsed by a Senate committee and could be debated by the full chamber in the coming weeks.


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Comments

Christopher Foote April 2, 2012 | 10:45 a.m.

I wonder how Mr. Schmitt plans to pay for his initiative. Perhaps he is unaware that for 2012, there is a $500 million - $1 billion budget shortfall in Missouri. Legislators whose initiatives increase the long term deficit should be labelled for what they are: fiscally irresponsible.

(Report Comment)
frank christian April 2, 2012 | 11:45 a.m.

Give it up Chris! Tax cuts DO create additional revenue for government!

(Report Comment)
frank christian April 2, 2012 | 11:54 a.m.

I wrote too quickly there, Chris. Should have stipulated across the board cuts. You will be back writing about the vote buying "targeted tax cuts", already wasted by this administration.

(Report Comment)
Ellis Smith April 2, 2012 | 1:00 p.m.

We can debate what tax cuts do or don't do (I agree with Frank), but I agree with Chris Foote - so long as we can include federal Senators, Congress persons and executive administrations whose initiatives serve to increase long-term debt.

Our federal government has yet to encounter a situation they couldn't overspend on. And with what results?

"I don't mind our going to the Moon, as long as we pay as we go." - Senator Dirksen (R), Illinois (a man respected by both the Democrats and Republicans of his time). Dirksen is famously known for saying, "A billion here, a billion there, and pretty soon you're talking about real money." :)

(Report Comment)
Christopher Foote April 2, 2012 | 9:18 p.m.

@Ellis,

I thought I could find some bipartisanship amongst the peanut gallery with my statement. As to whether tax cuts pay for themselves, the Reagan and Bush II decades suggest otherwise. Moreover, increasing taxes during the Clinton years greatly reduced our deficits. So in the last 30 years we have data from what happens following a tax increase (deficits went down) versus what happens when taxes are decreased (deficits went up). Perhaps we need a larger sample size?

(Report Comment)

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