Get rid of double taxation and encourage entrepreneurship

Is it fair to be taxed twice? Never.  

This is what corporate income tax is – double taxation. And who pays the cost? Workers, shareholders and consumers.  

Every corporation in the country pays a federal corporate income tax, and on top of that, many states also have a corporate income tax of their own. This taxes entities twice since the same income is taxed first as profit, and second as individual income when distributed as dividends to shareholders. 

It’s a common misconception that corporate income tax falls on the shoulders of the corporation. However, the real burden of corporate income tax is carried by workers, shareholders and consumers as corporations pass the burden of their additional tax on to employees and in the cost of products and services.   

Missouri currently taxes corporations at 4%. Americans for Prosperity (AFP) is supporting three bills currently in the State Legislature that would phase out the state income tax over the space of several years.

Missouri currently has a budget surplus of close to $6 billion. Phasing out the corporate income tax would give Missourian's back $712,140,077 of their own money that is already being taxed another time. According to the State Fiscal note on SB 93, “This proposed legislation could positively impact any small business that is obligated to pay Corporate income tax or Bank Franchise Tax”.  

Not only does eliminating double taxation provide a fair and friendly business climate, it shines a light on Missouri as an attractive state to run your business in, incentivizes entrepreneurship, and positively passes the benefits on to consumers.  

Phasing out the state corporate income tax is the right way to go.