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JEFFERSON CITY, Mo. – Six months after enacting a $2 billion tax cut for the wealthy, House Republicans voted today to completely eliminate Missouri’s corporate income tax, costing cost the state another $1.175 billion a year in lost revenue once fully implemented.
“By continuing to cut taxes taxes for the rich when we’re not paying teachers enough and working families are struggling, Republicans insist on unleashing devastating and long-lasting consequences for Missouri’s financial future,” said House Minority Leader Crystal Quade, D-Springfield. “Tax cuts may make wealthy GOP donors happy, but they don’t educate our kids, pay police officers or keep roads from crumbling. Missouri cannot continue down the path of fiscally irresponsible, Kansas-style tax cuts that render state government unable function while making the tax system less fair.”
Rather than cutting taxes for corporations and the wealthy, House Democrats advocate for targeted relief for Missouri families while restoring equity to the system. Democratic tax proposals include eliminating state sales taxes on food, diapers and feminine hygiene products.
In addition to completely phasing out the state’s corporate income tax by 2028, House Bill 816 also would fully exempt Social Security benefits from state taxation. Such benefits are already exempt for those with an annual income of $100,000 or less.
State Rep. Deb Lavender, D-Manchester, sought to have the corporate income tax and Social Security portions of the bill voted on separately, as is allowed under House Rules, but the effort was rejected on dubious procedural grounds.
“I agree Social Security shouldn’t be taxed but not at the cost of a $1 billion corporate tax giveaway,” Lavender said. “I am greatly disappointed the speaker denied us the opportunity to separate the issues.”
HB 816 won initial approval on a voice vote. A second, recorded vote is required to advance the bill to the Senate.
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