Missouri lawmakers take on economic border war

KANSAS CITY, Mo. - Lawmakers are now considering ways to stop the business border war between Kansas and Missouri.

In 2011, the country's second-largest movie chain, AMC, announced plans to leave downtown Kansas City, Mo., for Leawood, Kan.

AMC moved after Kansas offered millions of dollars in tax incentives.

A group of Missouri lawmakers gathered at Union Station this week to hear ideas on how to keep current jobs in the state and how to attract new ones.

Representatives from the St. Louis-based conservative think tank the Show-Me Institute told the legislative crowd that cutting corporate income taxes would be a good start.

Patrick Ishmael, a policy analyst with the Show-Me Institute, explained that when a state's corporate income tax goes away, "You're declaring to both those in the state and outside of the state ... who are considering moving here ... that we're open for business and that we'll make sure you'll reinvest in your business because that helps us, too."

There are a couple of legislative proposals in Missouri to cut income taxes this year as Kansas Governor Sam Brownback vows to eventually eliminate all income taxes in his state.

Critics argue a cut in income taxes often only benefits the wealthy, who can afford to buy businesses, and often raises tax burdens on the poor.