Missouri House scrambles to avoid budget hole from tax plan
From Associated Press –
JEFFERSON CITY, Mo. (AP) – Missouri lawmakers in a last-minute scramble are trying to cut corporate income taxes without blowing an estimated $52 million hole in the state budget.
At issue is a Senate tax plan to cut the corporate tax rate from 6.25 percent to 3.5 percent. To offset the revenue loss, the proposal would change how businesses can calculate their taxable income.
Earlier estimates projected the changes would mean close to $10 million more in revenue by fiscal year 2020.
But House Budget Committee Chairman Scott Fitzpatrick on Thursday said the Revenue Department made a $60 million mistake in its calculations. Revised estimates put the cost at more than $52 million.
The House instead voted for a 3.9 percent corporate tax rate Thursday, which Fitzpatrick said could cost as much as $15.4 million.