For decades, the state of Missouri had a corporate income tax of 5% and at one point got up to 6.25%. In 2018, that rate was cut back down to 4%, and the state is looking to reduce that number even more—bringing an economic boost to the state. Missouri House Bill 2274 is aiming to reduce corporate income tax rates until they are eventually eliminated. The proposed bill would reduce the tax rate by 1% each year until it is completely eliminated in 2028.
Economic Boost and Job Growth
District 5 Representative Louis Riggs says the proposed bill would not only benefit corporations but their employees as well. He says as corporations pay less and less over the years in corporate income taxes, they would have the ability to allocate that funding elsewhere such as facility improvements and paying wages. Riggs says House Bill 2274 is crucial in making the Show-Me-State more competitive with other states not just in the Midwest, but the entire country.
Some lawmakers believe this bill could put the state into a potentially challenging financial situation; however, Riggs says he believes it promotes growth—something he says is crucial for the state to stay competitive. “It’s important for us as a state to make sure that we are conducive to job growth, but also new job creation,” Riggs said. “The more incentives we can bring for folks to say hey come to Missouri or expand your business in Missouri, the better off we’re going to be as a state.”
This is the second year the House has voted to cut the corporate tax after failing to make it through the Senate.
