Intro: Missouri corporations could receive a tax cut if a bill sponsored by the most powerful Senator in the Missouri Senate. The Ways and Means Committee heard the bill Monday afternoon. Fanna (FAUNA) Haile-Selassie (HIGH-lay-suh-LAH-say)was at the hearing.
The franchise tax bill would phase-out the state's franchising tax rates within five years.
The sponsor Michael Gibbons claims it unfairly taxes Missouri's companies that makes the big bucks.
The Senate Committee held a hearing with not much debate from the committee members, but definitely from opposing witnesses. Tom Kruckmeyer, the chief economist for the Missouri Budget Project which is a large health care supporter, went on record to say Missouri already has one of the lowest business tax rates in the country. Kruckmeyer estimated the government money loss to be about one hundred twenty-five to one hundred fifty million dollars once the taxes are fully phased-out. From the state Capitol, Fanna Haile-Selassie, KMOX News. The Senate bill would, within five years, phase out Missouri's franchising tax, which primarily affects only large companies.
Some say the bill would stop a double-tax on Missouri businesses, including Michael Gibbons,the sponsor of the bill and the top Senator in the Missouri Senate.
But Otto Fajen, a lobbyist for Missouri's National Education Association warned that the money lost from the taxes could affect Missouri's economy.
There was no estimate by the legislature on how much money it would cost the state at the time of the hearing. From the state Capitol, Fanna Haile-Selassie, KMOX News
Actuality: KRUCK.WAV
Run Time: 00:12
Description: Taxes Missouri levies on businesses are among the very lowest in the nation. Corporate income taxes ranks well below the national average.
Intro: Several opposing witnesses against a bill that would create a permanent tax cut for large, money-making corporations, spoke out at the Committee Hearing Monday afternoon. Fanna (FAUNA) Haile-Selassie (HIGH-lay-suh-LAH-say) was at the hearing.
Actuality: FAJEN.WAV
Run Time: 00:11
Description: To ever bring similar revenues back has to be voted on by the whole state. And so our concern is that this would have a significant impact on our state's general revenue five years out.
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