AIM stands with Sen. Schmitt for “Broad-Based Tax Relief”
Associated Industries of Missouri (AIM) announced Tuesday that the organization will ask lawmakers and Governor Jay Nixon to approve a 50 percent tax cut for every Missouri business during the 2013 legislative session.
Senator Eric Schmitt (R-St. Louis County) announced his plan today to file AIM’s “Broad-Based Tax Relief Act” in the Missouri Senate.
“For about $357 per unemployed Missourian, our state could help Missouri employers provide new jobs through real, broad-based, pro-business tax relief,” said Ray McCarty, president of Associated Industries of Missouri. “For less than the cost of three weeks’ worth of unemployment benefits paid by the state to an unemployed Missourian, the state can provide a tax cut to employers so they can hire unemployed Missourians. Besides the pride that goes with a job, every person that obtains a job transforms from a person taking from the system into a person contributing to the economy through wages and taxes.”
The tax cut would be phased-in over five years. The first 10 percent cut would cost the state $73.5 million. The tax cut would apply equally to all Missouri businesses, regardless of size or type of business organization. Corporations, S corporations, partnerships, sole proprietorships and every other type of business would equally benefit from the plan.
“This legislation will put Missouri on the map, and send a signal to businesses large and small that we are open for business, and the Show-Me State is fertile ground for new jobs, expansion and investment,” said Sen. Eric Schmitt. “Providing tax relief for all businesses in Missouri, regardless of size or organizational structure, will make our state one of the most competitive in the country for attracting new businesses and jobs and for existing companies to grow.”
Missouri is competing with other states that have reduced their employer taxes. Kansas recently passed a complete exemption for small business income last year. Other states, including Oklahoma and Iowa, are also considering tax reductions on business income.
According to the U.S. Department of Labor, Missouri had a 6.9 percent unemployment rate in October. That translates to 205,983 unemployed Missourians.