Missouri Lawmakers Seek To Reduce Corporate Finance Tax
Written by Jenna Weiner
State lawmakers in Missouri are hoping to freeze the state's corporate franchise tax in lieu of doing away with it entirely.
In an effort to improve franchising news, Missouri lawmakers are hoping to eliminate a tax that businesses pay on their assets.
According to a number of business groups and lawmakers, the state's corporate franchise tax, which taxes businesses' assets such as inventory and buildings, hurts the state's economic recovery by encouraging businesses to remain small.
Under the new proposal, legislators would freeze the amount that businesses were required to pay so that they would not pay more than they had the year before.
"Double taxation is not what you want to do if you want to encourage capital investment in our state," sponsoring Representative Jerry Nolte told Bloomberg.
"We're very much supportive of capping, freezing, eliminating, torturing, killing the franchise tax," added Ray McCarty, the president of the Associated Industries of Missouri.
Currently, businesses with less than $10 million in assets are exempt from the franchise tax. If passed in the House, the bill will move on to the Senate, where it could be reduced before being repealed in 2016.
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