Stimulus plan could trigger Missouri tax cuts

JEFFERSON CITY, Mo. (AP) -- Economic stimulus plans pending before Congress could trigger a state tax cut for businesses and some individuals, the governor's budget office said Friday.

While good news to taxpayers, the federal plans could force Missouri government to cut expenses, programs or personnel to make up for lost revenue, budget officials said.

"The governor is deeply concerned about the potential loss of revenue to the state," said Gov. Bob Holden's budget chief, Brian Long.

Holden participated in a conference call Friday about the stimulus package with seven other Democratic governors and U.S. Senate Majority Leader Tom Daschle, D-S.D., said Christy Gallagher, the director of Holden's office in Washington.

The governors are urging Congress to support a stimulus package that provides federal tax relief without also triggering state tax cuts.

The Senate and House are taking different approaches toward the stimulus package. But both chamber's bills include provisions to accelerate the depreciation allowance that businesses can claim on equipment purchases.

A version passed by the House could result in a $70 million to $100 million reduction in state corporate income taxes, Long said. A version endorsed by a Senate committee could result in a $23 million to $33 million reduction in state corporate income taxes.