Massive tax cut speeds to Governor on wave of GOP votes
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Massive tax cut speeds to Governor on wave of GOP votes

Date: May 9, 2013
By: Alexander Mallin
State Capitol Bureau
Links: HB 253

Intro: 
Republicans say it will bring more jobs but Democrats argue it will break the bank, either way, the Missouri tax overhaul bill is on its way to the Governor.
RunTime:  0:39
OutCue:  SOC

Wrap: The measure would cut business income deductions by 50 percent over the next 5 years, and reduce the individual income tax rates by half percent increments over the next 10 years.

Democratic Representative Jon Carpenter says it would cost the state about $800 million in revenue per year.

Actuality:  CARPEN.WAV
Run Time:  00:08
Description: "Cutting taxes is easy and politically safe, but it's not the responsible thing to do right now."

But the bill's sponsor Republican Representative TJ Berry says he has a more positive outlook.

Actuality:  BERR.WAV
Run Time:  00:04
Description: "10 years down the line we will have less taxes and more revenue, that's where I see us."

The bill now heads to the governor.

Reporting from the state Capitol, I'm Alex Mallin.

Intro: 
It would be the first income tax cut in Missouri in 70 years, but Democrats say it could put Missouri on the verge of bankruptcy. Now, it's on the way to the Governor.
RunTime:  0:41
OutCue:  SOC

Wrap:  The measure would cut business income deductions by 50 percent over the next 5 years, and reduce the individual income tax rate by half percent increments over the next 10 years.

A similar measure failed earlier this year, but it included a hike in the sales tax that this bill excludes.

Democrats say it could cost the state $800 million in revenue per year.

But the bill's sponsor, Republican Representative TJ Berry says he talked with Governor Jay Nixon, whose only problem with the previous bill was the sales tax increase.

Actuality:  TJ4.WAV
Run Time:  00:07
Description: "I'm not quite sure that he's going to veto this bill this was not a Republican only bill, we had conversations."

Reporting from the state Capitol, I'm Alex Mallin.

Intro: 
In the final days of the legislative session, lawmakers in Missouri's Capitol have passed a bill that could slash taxes for business across the state.
RunTime:  0:47
OutCue:  SOC

Wrap: The measure headed to the governor could cut Missouri business taxes in half over the next 5 years. Republican Senator Will Kraus is one of the bill's big supporters. He says the tax cut would make Missouri more competitive with Kansas, which passed its own business tax cut last year.

Kraus says lower taxes in Missouri might keep some businesses from moving across the state line.

Actuality:  KCUT.WAV
Run Time:  00:14
Description: "People will say 'You know what, I'll stay in Missouri for at least another lease term, instead of moving my house and my business to Kansas.' If we do nothing, I think it gives them a great incentive. By cutting it in half over five years, I think there is less of an incentive to move."

Democrats largely oppose the bill. They say the hundreds of million of dollars in lost tax revenue could force dramatic spending cuts. 

Reporting from the state Capitol, I'm Wes Duplantier.

Intro: 
In the final days of the legislative session, lawmakers in Missouri's Capitol have passed a bill that could slash taxes for business across the state.
RunTime:  0:46
OutCue:  SOC

Wrap: The measure headed to the governor could cut Missouri business taxes in half over the next 5 years. The supporters of the bill say it keeps Missouri more competitive with Kansas, which passed a big tax cut of its own last year.

But Democrats like Senator Paul LeVota say that Kansas is losing revenue and slashing its state budget. LeVota says the same could be in store for Missouri.  

Actuality:  LEVA2.WAV
Run Time:  00:12
Description: "I think we should continue to be the Show-Me State, not the Me-Too State. Kansas revenues are dying over there, they're reduced. And now we just passed something as destructive as what they did."

Republican supporters of the measure say that the lower taxes will create economic activity that will more than pay for the bill's cost.

Reporting from the state Capitol, I'm Wes Duplantier.


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