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SB 661 - This act reduces the corporate income tax rate from its current six and one-forth percent of Missouri taxable income each year over a five year period. For the 2012 tax year taxable corporate income will be taxed at five and five-eighths percent. Once fully phased-in, taxable corporate income will be taxed at three and one-eighth percent for the 2016 tax year and all subsequent tax years. The act also creates an individual income tax deduction for business income and phases it in over a five-year period. Taxpayers will be allowed to deduct five percent of business income for the 2012 tax year and, once fully phased-in, will be allowed a twenty-five percent deduction for all tax years after the 2015 tax year. Shareholders of S corporations and partners in partnerships will be allowed a proportional deduction based their share of ownership. This act is similar to SCS/SB 146 (2011). EMILY KALMER
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