January 20 – This morning, State Representative Jerry Nolte (R-Gladstone) announced a bill to bring broad-based tax relief to every Missouri business. Nolte, the Chairman of the International Trade and Job Creation Committee, announced his intent to file the Broad-Based Tax Relief Act of 2012 in order to cut income taxes on all Missouri business in half over five years. Associated Industries of Missouri (AIM) joined Representative Nolte in support. The announcement was made at Bennett Packaging and Displays in Lee’s Summit – significant because the idea developed from a conversation with Kathy Bennett, owner and CEO of the firm.
“Times are tough, unemployment is still too high and Missouri families are hurting,” observed Nolte. “This legislation will create a pro-job environment where everyone has the opportunity to prosper.”
The legislation will phase-in a 50 percent tax cut over a five-year span beginning with a 10 percent cut in the 2012 tax year. The following years, businesses would benefit from a 20 percent cut in 2013, and a 30 percent cut in 2014. The Department of Revenue would evaluate the program to determine if the 2015 tax revenues are equal to or greater than 2012 levels. If they are, the cut would be extended to 40 percent in 2015, and the full 50 percent reduction in 2016.
“Government does not create jobs, private enterprise does,” said Nolte. “The Broad-Based Tax Relief Act will give Missouri one of the lowest tax rates in the country. In turn, we will attract new businesses to Missouri while helping existing businesses and encouraging job growth.”
AIM President Ray McCarty agreed with Nolte. “The legislature has passed legislation to promote jobs by targeting particular types of businesses, sizes of businesses, and individuals who are considering creating a business,” said McCarty. “While the legislature has done a good job of promoting business, the best way to promote business and restore prosperity is for government to relieve the burden on business and let them keep and reinvest more of what they’ve earned. This legislation will cut the tax bill of every Missouri business, no matter how small or large, and regardless of the form of business organization they choose.”
For audio statement by Representative Jerry Nolte, click here (.51MB,MP3, 32 secs., “…benefit from their hard work.”)
For audio statement by AIM President Ray McCarty, click here (.37MP, MP3, 23 secs., “…makes this bill unique.”)