May 26, 2015 6:00 PM
Business tax rates could drop by 2017
The Associated Press
Business tax rates will begin dropping in 2017 under a plan endorsed by Senate budget writers.
The plan proposes lowering the rate of the business profits tax from 8.5 percent to 8.3 percent in 2017. By 2019 the rate would be at 7.9 percent. It also aims to lower the rate of the business enterprise tax - paid on wages, interest and dividends - from .75 percent to .7 percent in 2017. The tax will eventually drop to .675 percent.
The rate reductions will reduce state revenues by roughly $14 million in the next budget.
Republican senators backing the cuts say they will eventually spur more business growth and increase state revenues. Democratic opponents, however, say reducing the tax rates isn't the best way to grow the economy.