Associated Industries of Missouri announced its support of the federal government’s approval of a temporary “fiscal cliff” compromise Tuesday.
The compromise was approved late New Year’s Day and awaits President Barack Obama’s signature.
“AIM is happy that they have extended the tax cut, however we are disappointed that it came with a tax increase that will hit some businesses,” said Ray McCarty, president of Associated Industries of Missouri. “We are also disappointed they did not address the spending issue, and we hope that any future spending cuts do not touch military spending due to Missouri’s prominence in military manufacturing.”
The bill extends 10-year-old tax cuts on incomes up to $400,000 for individuals and $450,000 for couples. It increases the tax rate from 35 percent to 39.6 percent on income above those amounts. The bill also extends for one year accelerated “bonus” depreciation of business investments in new property and equipment, a research and development tax credit and renewable energy tax credits.
Additionally, the bill extends for one year the unemployment benefits for the long-term unemployed.
It blocks a 27 percent in Medicare cuts to doctors for one year and delays $109 billion in Pentagon cuts; cuts that would have drastically impacted Missouri’s economy.