Budget Shortfalls and Tax Cuts

Governor-elect Greitens will barely be sworn into office when he will need to address an estimated shortfall of $150 million in the current state budget.  Gov. Greitens may have no choice but to withhold funding for different programs to get the budget back in balance. Many believe the budget shortfall is a direct result of legislation passed in recent years that reduced the corporate franchise tax and gave other tax breaks to special business interests.

Despite the declining state revenue, some lawmakers are still pushing the idea of more tax cuts this session. Sen. Will Kraus (R-Lee Summit)has already introduced legislation that would phase out the corporate income tax entirely in three years.

One fear that may stop more tax cuts is the financial crisis that Kansas is currently experiencing because of their massive tax cuts. Missouri may want to avoid these tax problems.