Editor's note: This is the first weekly column by state Rep. Travis Fitzwater, R-Holts Summit, that we plan to run in this space. Fitzwater represents the 49th District in the Missouri House of Representatives.
This week, the Legislature was hard at work discussing tax reform on the House floor. Speaker Pro Tem Elijah Haahr, the sponsor of the bill, led a detailed debate and handled numerous amendments over the four-hour discussion to reach an agreement on a tax reform package that will benefit all Missourians.
The package includes:
Critical funding for infrastructure paid for by fees on vehicles
Reduction of the personal and corporate income tax rates to 5 percent (A cut of nearly 1 percent on every Missourian's taxable income)
The closing of loopholes in our tax code, making the code simpler, fairer and flatter, while paying for the reduction in the personal and corporate tax rates
An Earned Income Tax Credit (EITC) that provides even further non-refundable tax relief for the lowest income earners in our state
Streamlined sales tax compact language that makes our sales tax system fair across the state's economy for main street businesses
Removing the apportionment loophole in our tax code that allows out of state corporations to avoid paying their full share of Missouri corporate income tax
A reduction in the amount retailers can be given for the timely filing of sales taxes to Missouri's Department of Revenue.
The bill is a robust reform to our tax code. The plan allows the state to create a revenue neutral policy to ensure we do not experience the same problems Kansas did when it changed its tax code years ago and reduced needed funds for education and infrastructure.
Additionally, the plan was crafted to ensure Missourians across the state benefit from the changes, not out-of-state corporations or small segments of our state's economy to the disadvantage of every Missouri taxpayer.
If the plan receives final approval from the House it will go to the Senate, where they are having their own debate on tax reform. I am encouraged by the work we put in this week to move our state one step closer to a fairer tax code for all Missourians, while ensuring fiscal responsibility and crucial new funding for our roads and bridges.