Missouri income tax cut debate focuses on Kansas

JEFFERSON CITY, Mo. (AP) - There was a lot of talk about Kansas as a Missouri Senate committee opened debate on proposals to cut the state's income tax.

Supporters of the measures said Wednesday that Missouri must lower income taxes to compete against a Kansas income tax cut that took effect this month. They fear businesses and residents will move to Kansas if Missouri fails to cut taxes.

But skeptics noted that Kansas now is projected to have a sizable budget hole because of the tax cuts.

The Missouri Senate panel heard testimony on three proposals. One would cut taxes only for businesses. Another would cut taxes for businesses and individuals. A third plan would offset part of the income tax cuts by raising the sales tax and cigarette tax.

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