As the chairman of the Senate Ways and Means Committee, I am fortunate to be leading the discussion regarding Missouri’s current tax policies and how they might be redesigned to attract more residents and businesses to the state. This week, we heard three bills in the committee, all of which lowered the tax burden on Missouri businesses and residents in some way.

Next week, the Ways and Means Committee will take public testimony on tax policy issues in general. I know there are good ideas out there that were not addressed in the bills heard this week. All ideas will be on the table as we try to come to agreement on one bill which can reach a common goal. In addition to that testimony, we are accepting public comments to taxpolicy@senate.mo.gov. Those comments will be shared with the members of the committee.

One of the projects our office undertook during the interim was to study tax policy in Missouri. We also looked at surrounding states, and at states that seem to have higher job growth or economic growth. We found some interesting things. First, Missouri’s reliance on personal income tax was one of the highest in the area, and we have a very low reliance on sales tax as compared to other states. Second, we found that higher growth states often use low or non-existent taxes to attract residents or business, and it works. In analyzing the research, it is easy to conclude that we could have a better mix of taxes to create a healthier business environment in Missouri.

The tax policy discussions in the Senate over the next few weeks will be broad and will cover many areas. We will discuss personal and corporate income taxes; general state sales taxes and the partial tax exemption on food; selective sales taxes, such as taxes for cigarettes, alcohol and gas; various fixes for e-commerce or Internet taxes; and the potential for other changes to the Missouri tax structure. My hope is that the Senate can build a consensus bill around these topics within a short period of time.

While Kansas and other states around us have passed, or are considering, major tax structure changes, Missouri has the opportunity to be a leader in finding the best possible solution. Many people think Kansas may have gone too far in cutting taxes, and we will have to be careful to not do so ourselves. I look forward to the discussion and input from constituents like you.

Calendar

On Friday, I will be attending the Government Relations Committee breakfast for the Lee’s Summit Chamber of Commerce. The local chambers of commerce rotate breakfasts through the month, so I will get to visit Blue Springs and Independence in upcoming weeks, as well.

Lee's Summit Winery Wins Governor's Cup

We issued a very special resolution this week to Stonehaus Farms Vineyard and Winery in Lee’s Summit. Owner Brett Euritt was in the Capitol this week to receive his Governor’s Cup award for Best Missouri Wine. Brett and his family stopped in the office, and we gave them a tour of the Capitol and took them to the top of the dome. Congratulations to Brett and StoneHaus Farms Vineyard and Winery for receiving this special honor.

District Days

This year, we will again host District 8 residents at the Capitol for our annual District Days.  On March 13 and 26, district visitors will get a tour of the Capitol, the Governor’s Mansion and the Missouri Supreme Court. They will also get to spend time with Sen. Kraus on the Senate floor and have an opportunity to meet their state representative. If you would like to attend, please send an e-mail to will.kraus@senate.mo.gov and we will get you more information. We have plenty of room, so please come down to see your government in action!