Gov. Greitens proposes tax cuts for most Missourians

Most Missouri taxpayers would receive tax cuts under a plan proposed by Gov. Eric Greitens that would cut both personal income tax and corporate tax rates.

The governor touted the plan Monday during a visit to Signature Packaging and Paper in a Jackson industrial park. More than 100 people attended the event, held on the factory floor. Many in the crowd were employees of the company.

Greitens, who visited three cities on the east side of the state Monday and plans to make stops in three cities on the west side of the state today, said the tax plan puts working people first and rewards businesses for hiring Missourians.

The governor said the plan unveiled Monday would cut taxes for 97 percent of all Missouri taxpayers.

�We are targeting working families,� he added.

Governor Eric Greitens talks with members of the community Jan. 29, 2018, after speaking at Signature Packaging and Paper in Jackson.BEN MATTHEWS ~ bmatthews@semissourian.com

The plan would cut taxes to zero for 380,000 working-class Missourians, Greitens said.

The governor�s plan calls for cutting tax rates by an estimated $800 million.

A handful of protesters shouted at Greitens during his speech, voicing frustration over the governor�s proposed cuts to higher education.

He did not respond to the protesters.

After his speech, Greitens told reporters his proposed cuts in funding for higher education are not designed to help pay for the proposed tax cuts.

A group of women protest funding cuts from higher education during the governor's stop at Signature Packaging and Paper on Jan. 29, 2018, in Jackson.BEN MATTHEWS ~ bmatthews@semissourian.com

He said his office brought in budget experts who determined the University of Missouri alone could save $70 million just by reducing its administration.

�We believe by reducing administration, we believe we will be able to provide high quality education,� he told reporters.

Greitens added that his spending plan includes more money for student scholarships.

�We have to make tough choices in the (state) budget to make sure the budget balances,� he said.

Greitens said the tax-cut plan is �revenue neutral, so it won�t have an effect on the budget.�

Democrats quickly expressed skepticism with the plan, according to The Associated Press.

�Despite a strong economy and low unemployment, Missouri is enduring a second straight year of deep state budget cuts because Republicans put granting large tax cuts to their wealthy donors ahead of the financial stability of the state,� House Minority Leader Gail McCann Beatty said in a statement. �The governor�s proposal would only serve to make the state�s financial crisis far worse than it already is.�

The Republican governor said the plan would:

• Cut the top personal income tax rate from 5.9 percent to 5.3 percent.
• Implement a �Workers First� tax cut, a nonrefundable credit against tax liability equal to 20 percent of the federal earned income tax credit.
• Cut the corporate income tax rate from 6.25 percent to 4.25 percent
• Eliminate certain �unnecessary tax breaks and close loopholes� to make the tax reform effort revenue-neutral.

Greitens said in a statement earlier in the day the moves would result in Missouri having the second lowest corporate tax rate in the nation.

Married parents of two children with a total income of $30,000 currently pay $348 in state income taxes. Under the governor�s plan, that couple would pay no tax.

Greitens said by cutting taxes on businesses, companies will be able to hire more workers.

Missouri is losing jobs to states with more favorable corporate-tax environments, according to Greitens. Lowering the corporate tax rate �can be a major selling point as Missouri competes for jobs� he said in a statement.

Greitens said his plan would eliminate a 2 percent discount businesses receive for filing taxes on time. Missouri, in effect, rewards businesses for what they are required to do by state law, he said.

Missouri is the only state in the nation that allows corporations to choose from three different taxing methods.

�Right now, multistate corporations that invest and hire workers in other states � outside of Missouri � can be rewarded and pay less in Missouri taxes than if they had invested and hired workers in Missouri,� Greitens said in a statement.

By imposing one taxing method for all corporations, companies would be encouraged to hire and invest in Missouri, he said.

The governor also said he wants to eliminate federal tax deductions corporations and individual taxpayers now take.

Corporations at present may deduct 50 percent of their federal corporate income tax from their state corporate income tax. Repealing the state corporate income tax deduction would simplify the code, according to Greitens.

He also proposed phasing out federal tax deductions for individual income taxpayers making more than $25,000 a year. Greitens said he wants to completely eliminate the tax break for those making more than $150,000 a year.

Greitens also said Missouri should enter into the multistate agreement that makes it easier to tax internet sales and �level the playing field for local Missouri retailers.�

mbliss@semissourian.com

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1302 Lenco Ave., Jackson, Mo.