Bill Dropping Business Taxes Moves Forward

By: AP
By: AP

TOPEKA, Kan. (AP) _ The House Taxation Committee endorses a bill
to rewrite corporate income tax laws.

The bill drops the top tax rate for businesses from 7.35 percent to 6.85 percent. It also rewrites rules for a job-creation tax credit and phases in a sales tax exemption for equipment for research and development and machinery purchased by telecommunications companies.

But it also increases corporate income taxes for some out-of-state companies by closing what some legislators see as loopholes.

Overall, business taxes would drop by $20 million or more a year, House leaders believe.

The measure did inspire complaints, however, because of its complexity.

The committee's voice vote Friday sent the measure to the House for debate.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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