(Photo: David Duprey, AP)
JEFFERSON CITY, Mo. (AP) - The Missouri Senate has passed legislation phasing in a potential $700 million income tax cut for businesses and individuals.
The legislation approved 24-9 Wednesday by the Republican-led Senate is intended to counteract a large income tax cut that took effect this year in Kansas. The bill now goes to the House.
It would gradually cut the individual income tax by one-half of a percentage point and the corporate income tax by three percentage points over a decade. But each incremental cut would take effect only if annual revenues rise by at least $100 million.
The bill also would phase in a 50 percent deduction over the next five years for business income reported on individual taxes.
Legislative researchers estimate the bill would reduce revenues by $692 million when fully implemented.