Major changes to the tax code appear to be top priority on the agenda for the 2013 session of the Missouri Senate. According to one report, Sen. Tom Dempsey (R-Saint Charles), who is expected to be elected as the presiding officer of the Senate when it convenes, was quoted as saying the Senate will move quickly to provide “income tax relief.” Specifics have yet to be finalized, but corporate and small business (i.e. pass-through entities) tax cuts are on the table. Another objective for the Senate is overhauling the state’s tax credit programs.
The above items are worthy goals. Patrick Ishmael and I have pointed out the benefits of business tax reform. It would be great if the state capped and/or eliminated certain tax credit programs such as the Quality Jobs program and used the extra revenue to eliminate the state’s corporate income tax. We have also pointed out the strategic necessity of following other states’ leads and eliminating the tax on pass-through entities such as LLCs.
I hope that the Senate can follow through on these stated objectives and help enact some meaningful changes in the tax code. Legislating is not easy, but the opportunity is present for legislators to accomplish a lot.