U.S. Markets closed

Mo. House backs tax cut, local bonding plans

JEFFERSON CITY, Mo. (AP) -- The Missouri House has given initial approval to a business tax cut and a bonding program inspired by a job competition with Kansas.

One bill endorsed Wednesday would phase in a 50 percent deduction for business income reported on individual income taxes and cut the state's corporate income tax rate in half over five years. It's projected to eventually reduce state revenues by up to $328 million annually.

A second bill would authorize cities and counties to issue bonds for development projects that would be paid off through sales tax revenues.

Both measures are similar to policies in Kansas, which has been competing with Missouri to lure businesses.

The Missouri House bills need a second vote before they can advance to the Senate.