Missouri Governor Eric Greitens is traveling around the state to explain his new proposal that he believes will improve the state’s economy. On January 29, Governor Greitens announced his new ideas for cutting taxes on both individuals and corporations.
Under Mr. Greitens new tax proposal, the top tax rate for individuals would be lowered from the current 5.9 percent down to 5.3 percent. The tax rate for Missouri corporations currently stands at 6.25 percent, and the governor proposes that that rate go down to 4.25 percent.
Mr. Greiten’s proposal is receiving mixed reviews even from some in his own Republican Party. In 2014, Missouri already enacted some significant tax reductions. Many Missouri lawmakers feel that if new tax reductions are put in place so soon after the last ones, there won’t be enough money left in the budget to cover essential items. They fear that what happened in the neighboring state of Kansas might well occur in Missouri.
In Kansas, the state made drastic tax cuts. These tax cuts left the state with serious budget issues including a lack of funds to pay for court mandated education funding. Last year, the Kansas State Legislature reversed many of Governor Brownback’s tax cuts, and the budget problems are no longer as severe.
In order to prevent in Missouri what occurred in Kansas, Governor Greitens is proposing that some tax breaks in Missouri be eliminated. Right now, Missouri businesses receive a tax break if they pay all of their sales taxes on time. The governor seeks to eliminate this break to help pay for his new proposals.
Governor Greitens is currently involved in a situation where his popularity is sinking. The governor admitted to an affair, and events surrounding it are under investigation. His political standing may place his new proposals in jeopardy.