Missouri had a 5% corporate income tax for many years, and it was once raised to 6.25%. In order to stimulate the state’s economy, the rate was lowered again to 4% in 2018 and is currently being further reduced.
The goal of Missouri House Bill 2274 is to gradually lower corporate income tax rates until they are eliminated. The tax rate would be lowered by 1% annually under the proposed plan until it is totally repealed in 2028.
Representative Louis Riggs of District 5 claims that the proposed bill would help corporations as well as their workers.
According to him, companies would be able to use the money they would otherwise pay in corporate income taxes toward other things like building upgrades and employee compensation.
For the Show-Me-State to be more competitive with other states—not just in the Midwest, but across the nation—Riggs believes House Bill 2274 is essential.
While some legislators worry that this plan would put the state in a difficult financial situation, Riggs maintains that he thinks it encourages growth, which is essential for the state to maintain its competitiveness.
“It’s important for us as a state to make sure that we are conducive to job growth, but also new job creation,” Riggs stated. “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.”
After failing to pass the Senate, the House has voted to lower the corporate tax for the second year in a row.
