Proposal focus includes tax cuts for working families, lower corporate income tax
Gov. Eric Greitens shared details of his new tax proposal on Monday, Jan. 29 during a visit to Palmyra, discussing a new plan that would result in tax cuts for 97 percent of Missouri taxpayers if approved.
Greitens spoke with scores of people gathered at Doyle Manufacturing, outlining how his tax plan was focused on helping working Missourians and driving business growth. Greitens stressed that the tax cuts would continue to increase jobs and revenue. With unemployment rates at their lowest level in 17 years for the Show Me State, Greitens said more prosperity was on the way through the new plan.
“We're going to be bringing more jobs and higher pay to the people of Missouri,” he said.
If approved, Greitens' tax plan would cut back certain regulations and loopholes — like bonuses to corporations for filing taxes on time and incentivizing companies to hire out-of-state employees — and would reduce corporate income tax rates from 6.25 percent to 4.25 percent. That tax rate would be the second-lowest level in the nation. The plan also called for a revamp to a decades-old law Greitens said would remove the tax burden for 380,000 working-class Americans.
Greitens said Missouri taxpayers who earned more than $9,072 each year were classified under the top income tax rate based on an existing 1971 law. The tax cut proposal would cut the tax rate for those residents from 5.9 percent to 5.3 percent. Greitens also touted a “Workers First” tax cut, which would enact a 20-percent non-refundable credit against tax liability based on the existing federal earned income tax credit system.
Greitens said the tax plan was “revenue-neutral” and would not cut existing services. He said Department of Revenue staff studied 7,000 different scenarios, reinforcing Greitens' statements that 97 percent of Missourians would receive a tax cut and 380,000 working-class families would not pay anything on their tax bill.
Greitens said he felt confident that the bill would be approved in Congress, and he expressed hope it would be passed by the end of the year. He asked the members of the audience to reach out to their legislators to express their support for the new plan
“If we do this together — if we stand up together and say we're going to fight for a system that rewards working families and rewards businesses for hiring people, and building here in the state of Missouri... — we're going to take this state in a new and better direction,” he said. Jeff Bettitt, Electrician and Supervisor of the Electrical Department at Doyle Manufacturing, agreed that Greitens' plan would provide far-reaching benefits for Missourians.
Bettitt said that aspects like the corporate income tax break would lead to improved working conditions and the ability to upgrade facilities more often — which he said would benefit people throughout the region.
“I think it's a good idea — because in my opinion, the more money the company's got, it's going to be passed down to the employees and the community,” he said. “They'll be able to spend more money here locally.”
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