Missouri tax reform

At the end of 2017, the federal government passed some comprehensive tax reform that made America more attractive for businesses, helped create more and better paying jobs, and let Americans keep more of their hard-earned money in their paychecks.

These reforms have so far been a boost to our national economy. But they also required states to re-examine their own tax codes and adjust accordingly.

Earlier in session, the Senate Ways & Means Committee debated a couple of comprehensive tax proposals for our state. The final product of those debates should be coming out of the Senate in a week or two.

Meanwhile, the House has now filed a tax reform bill as well, and debate on it will begin in the House Ways & Means Committee on March 5. The bill, HB2540, is 429 pages long. As you might imagine, it does not read as smoothly as a Mark Twain novel. As the vice-chairman for Ways & Means, I spent my weekend poring over the bill in preparation for committee discussion.

Elements of the tax reform bills include adjustments to the personal income tax, corporate income tax, car licensing fees, fuel taxes, internet sales tax, and ending certain personal exemptions and corporate discount loopholes.

The goal is to piggyback on the federal tax reform, producing smart tax policy changes that provide our citizens and businesses with tax relief in a nearly revenue neutral way that does not stress the state budget, and ultimately leaves more money in the pockets of our citizens.

The tax changes enacted a few years ago in Kansas have become the example of how NOT to do tax reform. We are hoping our Missouri improvements become the example of how states should enact tax reform.

And now, if you will excuse me, I have more reading to do. If you want to read along, the bill is at house.mo.gov/billtracking/bills181/hlrbillspdf/6148H.01I.pdf