The franchise tax bill would phase-out the state's franchising tax rates within five years.
The sponsor Michael Gibbons claims it unfairly taxes Missouri's companies that makes the big bucks.
The Senate Committee held a hearing with not much debate from the committee members, but definitely from opposing witnesses.
Tom Kruckmeyer, the chief economist for the Missouri Budget Project which is a large health care supporter, went on record to say Missouri already has one of the lowest business tax rates in the country.
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|Description: Taxes Missouri levies on businesses are among the very lowest in the nation. Corporate income taxes ranks well below the national average.|
Kruckmeyer estimated the government money loss to be about one hundred twenty-five to one hundred fifty million dollars once the taxes are fully phased-out.
From the state Capitol, Fanna Haile-Selassie, KMOX News.
The Senate bill would, within five years, phase out Missouri's franchising tax, which primarily affects only large companies.
Some say the bill would stop a double-tax on Missouri businesses, including Michael Gibbons,the sponsor of the bill and the top Senator in the Missouri Senate.
But Otto Fajen, a lobbyist for Missouri's National Education Association warned that the money lost from the taxes could affect Missouri's economy.
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|Description: To ever bring similar revenues back has to be voted on by the whole state. And so our concern is that this would have a significant impact on our state's general revenue five years out.|
There was no estimate by the legislature on how much money it would cost the state at the time of the hearing.
From the state Capitol, Fanna Haile-Selassie, KMOX News