Phases out the corporate income tax
This bill is designed to stimulate business growth and attract corporations to Missouri by lowering the tax burden on corporate profits. Supporters argue that reducing corporate taxes could encourage investment and economic development within the state. By eliminating the corporate income tax, businesses operating in Missouri may have more financial flexibility to reinvest in their operations, leading to potential job creation and increased economic activity.
Senate Bill 1029 aims to phase out corporate income taxes in the State of Missouri. The bill proposes a schedule of reductions starting from a current rate of six and one-fourth percent for taxable income. Beginning January 1, 2020, the rate will decrease to four percent. Moreover, starting in 2025, it will be reduced by eight-tenths of a percent each year until it reaches zero by 2029, thus eliminating corporate income tax altogether during that time frame.
However, there are notable points of contention surrounding SB1029. Critics argue that phasing out corporate taxes could significantly reduce state revenue, which may result in budget cuts to essential services, including education and public safety. There are concerns that the long-term effects of such financial restructuring could harm constituents if businesses do not reinvest their tax savings as anticipated. As the state looms on the brink of drastically changing its corporate tax structure, discussions among legislators reflect the divided opinions on balancing short-term business benefits against long-term financial implications for the state.