The 97th General Assembly, Second Regular session will begin at noon on Wednesday, January 8, 2014. Our membership has coalesced around three primary issues for the upcoming session which will end on May 16, 2014.

  • Tax Reform
  • No Medicaid Expansion
  • Employee Freedom

The first priority we will discuss today is Tax Reform.

Tax Reform

Missouri’s economy and it’s recovery is lagging even the anemic economic recovery of the nation. The legislature passed a bill last session, House Bill 253 that provided the first broad-based income tax cut for every Missourian in nearly 100 years.  Governor Nixon vetoed the bill using false and misleading information. Sadly, a number of legislators could not maintain the strength of their convictions and voted to sustain the veto.

Governor Nixon continued to deny that broad based tax cuts did anything to stimulate the economy. He has shown a penchant to ignore facts (the action alert associated with the post is no longer active). But to be fair, he also ignores what is going on in his administration as well.

However, in December Governor Nixon got tax policy religion. He called the legislature into special session to enact special tax breaks for the Boeing Company. It sounded good. Give one of the largest corporations in the world a $1.7 billion tax break to bring 8,000 jobs to the state. You know the old saying, if it sounds to good to be true it probably is? Governor Nixon proved it again.

Many of us pointed out the hypocrisy of the Boeing tax breaks. Many of us pointed out that this “opportunity” was being used by Boeing as leverage with the union in Washington state. This turned out to be true. Boeing machinists in Seattle approve contract tied to 777X.

As you might expect, the Governor and his allies who didn’t want working Missourians to keep more of their own hard-earned money claimed the Boeing deal wasn’t the same.  And they are right. It was much worse!

As Brad Jones lays out in an op-ed piece, Boeing Deal Great but What About Real Job Creators?, most of Missouri’s jobs are not created by the Boeing’s of the world even though they are great companies.  Most of Missouri’s jobs are not created by tax credits either!

So then who are the real job creators? Missouri’s small businesses! The same small businesses that Governor Nixon and the education establishment said should not be allowed to keep more of their money to expand and grow Missouri jobs!

As Mr. Jones points out,

According to the Missouri Division of Employment Security, businesses with less than 10 employees added 14,207 workers between 2005 and 2012 and they didn’t get a billion dollars in tax incentives to do it.

When will they call a special session to help those companies expand and excel in this state?

Small business is the engine that drives our state’s economy. Small businesses represent about 98 percent of the state’s employers and employ a little under half its private-sector workforce, according to the latest figures from the U.S. Small Business Administration.

Advocates tout the potential of 8,000 new jobs the Boeing deal may bring to our state and we hope we get every single one of them, but those jobs come with a price tag that will be absorbed by all working Missourians through diverting an estimated billion dollars in incentives over a 10-year period.

It should also be noted that companies with 50 or fewer employees created 72,562 new jobs between 2005 and 2012.

Governor Nixon and the educrats claimed that the state could not afford to let people, especially those nasty small business owners who create most of the jobs in the state, keep more of their hard earned money. The facts show that the state can’t afford not to do so!

Look at Oklahoma’s history. Every time they have cut taxes, state reveneus have gone up not down.

3Many of those voting for the Boeing “deal” were consistent in their positions that tax policy does matter.  Many were not The Wall of Shame Rides Again!

The legislature should pass a tax reform bill that provides tax relief to all Missourians and our small businesses. They should do it as early as possible in session so that Governor Nixon has the opportunity to show where he stands. He either supports the big boys or Missouri’s small businesses.

If he vetoes the bill during session, it will also give the members of the Wall of Shame an opportunity to redeem themselves.  Until then, talk is cheap!

#2014Taxreform