Among the budget proposals put forward by Governor Matt Blunt in one to cut the franchise tax for most businesses that provide health insurance to their employees. The Blunt budget proposal could eliminate the tax for 87 percent of employers and virtually all small businesses paying the tax. Dan Mehan, President of the Missouri Chamber of Commerce, says it’s a good first step. The franchise tax is levied on employers with assets of more than one-million dollars. The Blunt proposal would benefit all businesses under a $15-Million cap. Mehan says he’d like to see the tax eliminated for al employers, and not discriminate against large or successful employers that are growing. He reiterates, however, the proposal is a step in the right direction because it would lead to an improved business climate which would stimulate the economy.
