Missouri Senate GOP leaders outline priorities for session

Republican leaders said this morning that Missouri needs to cut income taxes to compete with Kansas, which recently eliminated income taxes on many small businesses.

But senators also hope to craft a long-term plan that could raise hundreds of millions of dollars for highways by increasing the sales tax, if state voters agree.

Those goals are among the top priorities for the session that begins today, President Pro Tem-designate Tom Dempsey, R-St. Charles, told reporters at a news conference before the noon opening gavel.

The two ideas work together, he said, because any income tax cut would be "revenue-neutral," holding steady the general revenue that finances basic state services. For example, closing tax loopholes and taxing Internet sales could help offset a tax cut, Dempsey said.

Meanwhile, a new highway funding source would be "a dedicated funding stream for transportation alone," he said.

Dempsey is set to be elected to the Senate's top job when the Legislature convenes. In the House, Speaker Tim Jones, R-Eureka, is expected to be chosen to lead that chamber for the four-month-long session.

"There's reasons for great optimism that it's going to be a very productive year," Dempsey said.

His top priority is to "grow our economy," he said. "In the Missouri Senate, we're going to pursue an income tax cut...to get people working, to increase personal incomes so people can take care of their families."

He also promised to put on the fast track legislation that would keep workplace injury claims in the workers compensation system, streamline business regulations and reform tax credits.

Senate Minority Leader Jolie Justus, D-Kansas City, said she agrees with the Republicans' goal to spur the economy, but she urged caution in following Kansas' lead on a tax cut.

"Kansas has been incredibly reckless" and faces a huge budget hole, Justus said.