November 1, 2014

Tax credit reforms piling up (AUDIO)

Fifteen proposals changing Missouri’s tax credit system have been filed in the legislature this year.

The pressure to cut back tax credits has been growing each year as the legislature has struggled to find money for state programs and institutions.  Last year, the state did not collect $629 million in taxes, letting developers and charitable organizations plow that money back into their projects. That growth of tax credit redemptions has led to calls to scale back or eliminate some programs.

Senator Will Krause of Lee’s Summit has thrown his version of tax credit reform on the pile. He’d eliminate some credits; cap others; and require reviews of each surviving program every few years. He’d like to just kill all of them. 

                                 AUDIO: Krause :25  

Krause says members of the Senate need to find common ground on one bill.  House members, he says, will have to do the same thing with their proposals.  Only then will the House and the Senate be able to work on a final compromise bill.  Krause thinks this is the year the legislature will reform the system after a couple of years when the issue became bogged down.