Beyond filing right-to-work legislation in January, Rep. Eric Burlison, R-Springfield, has introduced two other measures this legislative session that could have a broad impact on Missouri businesses.
On Feb. 11, Burlison filed House Bill 536, aka the Broad-Based Tax Relief Act, which would increase business tax deductions during a five-year period. The bill would create a 10 percent deduction for businesses reporting income on individual returns in 2013 and increase the deduction each year by 10 percent until it reaches 50 percent in 2017. HB 536 also would reduce the corporate income tax burden by 50 percent during the same period.
He said the measure is a way to combat steep tax reductions the state of Kansas put into place last year, when it dropped its top tax rate to 4.9 percent from 6.45 percent. In his State of the State address last month, Kansas Gov. Sam Brownback proposed further state income tax reductions to 3.5 percent in the top bracket.
In Missouri, the top individual tax rate is 6 percent, and the corporate income tax rate is 6.25 percent.
Burlison claims businesses bordering the Kansas state line already are talking about moving to take advantage of the lower tax rate.
“It is clear they are winning the border war with Missouri,” Burlison said.
HB 536 received a second reading Feb. 12, but the bill is not currently on a House calendar.
In addition, Burlison introduced House Bill 112, a tort reform proposal that replaces common law rules with statutory guidelines to cap punitive damages in medical malpractice lawsuits.
In August, the Missouri Supreme Court ruled 4-3 to remove a cap on noneconomic damages, ruling that juries had a right to determine noneconomic damages under common law, which was in place before the Missouri Constitution was written. As Missouri governor in 2005, Matt Blunt signed a law that limited such damages to $350,000.
Burlison said last year’s court ruling hurts health care providers across the state by encouraging more lawsuits.
“It’s like the lottery for trial attorneys,” he said, explaining when the Powerball award is small, not as many play, but when the award is large, even those who don’t normally play buy tickets. Similarly, he said attorneys would have an increased incentive to pursue malpractice suits to gain larger monetary awards.
The HB 112 public hearing was completed Feb. 13, and no other hearings have been scheduled, according to House.Mo.gov.
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