Businesses stand to gain, don't debate

Intro: A bill that would cut businesses' taxes and cost the state an estimated $100 million in the first year came and went Wednesday during a Senate committee hearing without debate, not even from businesses.

Theo Keith has more from Jefferson City.

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It took the Senate Ways and Means Committee only five minutes to debate phasing out the state corporate income tax but it took no action.

The bills are sponsored by GOP Senators Charlie Shields of St. Joseph and Luann Ridgeway of Smithville.

Shields says eliminating a tax on businesses will help the entire economy.

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Description: "No corporation ever paid a tax. It either comes from the customers, comes from the shareholders or it comes from the employees. And this is one way to get past that, get jobs moving in this state, and I think it sends the right message to businesses that want to locate in Missouri."

Opponents of the bill said businesses need to pay their share for necessary state services.

From the State Capitol, I'm Theo Keith.

Intro: A proposed bill to give businesses a $100 million tax break in the first year alone received little debate in a Senate committee hearing Wednesday.

Theo Keith has more from Jefferson City.

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The Senate Ways and Means Committee heard about five minutes of testimony from supporters and opponents of two bills to phase out the corporate income tax over the next few years.

Smithville Republican Senator Luann Ridgeway sponsors one of the two bills.

She says when businesses keep their profits, it spurs the economy.

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Description: "One of the things that I know is that a vacuum can't exist in nature and it should exist - and it can't exist - in government. That money will go somewhere. It needs to go back to the job producers in this state."

GOP Senator Charlie Shields sponsors the second measure.

Opponents say businesses need to pay for state services, such as education, which they say leads to a skilled workforce.

The committee didn't take any action on the bill.

From the State Capitol, I'm Theo Keith.

Intro: The business community says eliminating Missouri's corporate income tax, which would cost the state an estimated $100 million in the first year, would bring more jobs to the state.

Theo Keith has more from Jefferson City.

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Missouri Chamber of Commerce Taxation Director Tracy King says cutting the tax will provide an incentive for businesses to stay in Missouri and others to move to the state.

King says Missouri will eventually regain those dollars lost by getting rid of taxes.

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Description: "If you ultimately bring more business into the state, which that hires more employees, those people work, they pay more income tax, they have more money, they spend more money - their sales tax and property taxes in the state."

King says Tennessee doesn't have a corporate income tax, and businesses from high-tax states are relocating there.

The Missouri National Education Association opposes the two measures to cut the tax.

According to its spokesperson Otto Fajen, businesses actually benefit from paying the tax because state services help them over time.

He says education leads to a skilled workforce, which makes businesses more productive.

Fajen told the Senate Ways and Means Committee that businesses who make larger profits should pay more for necessary state services, such as education.

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Description: "There are a lot of public investments that are made and we believe that people should pay based upon their ability to pay. There are a lot of benefits to corporations for that public investment."

Two Republican senators, Charlie Shields of St. Joseph and Smithville's Luann Ridgeway, have sponsored similar bills that would phase out the business tax in the next few years.

The committee didn't take any action on the bill.

From the State Capitol, I'm Theo Keith.