It appears certain any attempts to reform tax credits will find tough sledding in the House.
House Speaker-elect Steven Tilley (R-Perryville) disputes the conclusion reached by the Tax Credit Review Commission.
“Clearly, we don’t believe that there’s anywhere near $200 million worth of savings in tax credit reforms,” Tilley tells reporters during a news conference at the Capitol.
Tilley warns the Nixon Administration not to base its budget on projected savings from tax credit reforms. The commission appointed by Governor Nixon proposes eliminating 28 tax credits, scaling back 32 to save $220 million.
Though Tilley takes the governor to task, the real battle over tax credits at the Capitol has been between the Senate and the House.
“Philosophically, we just disagree,” Tilley says of the House dispute with the Senate over tax credits. “They believe in the principle that a dollar cut from a tax credit is a dollar saved whenever we’ve had the Department of Economic Development testify in committee that they have a net positive impact on the state. You can’t bring those two sides together.”
The dispute between the two chambers over tax credits has stymied work on economic development the past couple of sessions.
AUDIO: Brent Martin reports [:60 MP3]
