Tax overhaul approved by Missouri Senate

9:55 PM, Mar 6, 2013   |    comments
Missouri State Capitol building. (AP File)
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DAVID A. LIEB, Associated Press

JEFFERSON CITY, Mo. (AP) - The Missouri Senate has endorsed a massive tax overhaul intended to keep pace with recent tax cuts in Kansas.

Senators gave preliminary approval Wednesday to legislation that would phase in a three-quarters of a percentage point cut in state income tax rates for individuals and businesses over the next five years. It also would gradually raise the state sales tax by one-half of a percentage point over that same time.

The plan includes an additional income tax cut for low-income residents, and it seeks to boost tax collections from Internet sales and some out-of-state retailers.

Sponsoring Sen. Will Kraus, a Republican from Lee's Summit, says the legislation could reduce state revenues by about $450 million when fully implemented.

Some Democrats warned it could jeopardize future funding for schools.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

Associated Press

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