May 19, 2013

Legislature passes tax cuts (AUDIO)

The legislature has sent tax cuts for businesses and individuals to the Governor for his signature.

Missouri legislators have wrestled with tax cuts to compete with neighboring Kansas for two years, the goal being to attract and retain businesses and grow jobs. Rep. Andrew Koenig (R-St. Louis County) says Missouri is lagging behind in restructuring taxes to bolster the economy.

The bill would cut business taxes in increments over the next several years and only if the state’s general revenue fund could support them.

The bill’s sponsor, Rep. T.J. Berry (R-Kearney) says the Office of Administration would weigh general revenue amounts over three years before cutting the taxes, which would be reduced to a minimum of 50 percent.

Opponents of the measure say Medicaid expansion was denied by legislators on the premise that the state could not afford it, and that money would cut from education funding, but that those same lawmakers are supporting a bill that takes a huge bite out of state revenue.

AUDIO: Rep. Andrew Koenig talks about tax structures in neighboring states.

House version of workers’ compensation, Second Injury Fund bill passed

The state House has passed its version of workers compensation reform and a Second Injury Fund fix, setting the stage for a conference with the Senate.

Representative Todd Richardson (photo courtesy; Tim Bommel, Missouri House Communications)

Representative Todd Richardson (photo courtesy; Tim Bommel, Missouri House Communications)

Both versions of the bill would have claims made by workers who incurred a disease because of their job fall under the state’s workers’ compensation system, to protect employers from lawsuits. They include a plan to create a fund to pay for part benefits to people who suffer from diseases related to exposure to toxins.

Representative Kevin Engler (R-Farmington) says the Senate proposal would have every employer in the state pay into that fund, an idea he opposed when he was in the Senate and still opposes.

“Whether you deal with chemicals or deal with anything else, every employer in the state will have a tax to take care of the fund that was caused by the people that brought chemicals in that caused these occupational hazards.”

The House proposal would support that fund with a surcharge to the workers’ compensation insurance premiums of only employers with 15 or more employees.

The state’s Second Injury Fund compensates workers with disabilities who sustain job-related injuries. It is supported by a surcharge on employers’ workers’ compensation insurance premiums that the state capped in 2005 at 3 percent. The fund is now insolvent, and the bill proposes raising that cap to 6 percent to replenish it.

The House sponsor of the bill, Representative Todd Richardson (R-Poplar Bluff) says that fund is more than $20 million out of balance.

“There are more than 800 claimants right now that aren’t getting paid and there are more than … 30,000 unresolved Second Injury Fund claims.”

Richardson says the House and Senate are in agreement on the portion of the bill dealing with the Second Injury Fund. He expects the Senate to request a conference to work out differences on the workers’ compensation and occupational disease language.

Ford plant in Claycomo adding 2,000 new jobs

The Ford plant in Claycomo is adding a third shift to it’s F-series pick-up truck production line to meet increased demand.

Ford Plant Manager Dan Jowiski says the third shift will mean a thousand new jobs for the Kansas City region, in addition to the thousand announced earlier with the expanded Ford transit line. He says the F series line is up 24 percent for April and 19 percent year-to-date. Jowiski says vehicle sales are climbing as the economy recovers, and truck sales are directly related to new-home construction as the housing market rebounds.

Governor Nixon, who was instrumental in working with Ford to expand its assembly line in the Kansas City area, is at the plant today. He says the expansion ensures that Missouri will continue to lead the rebirth of the American auto industry.

Jowiski says the new jobs will be both entry-level positions as well as skilled labor. He encourages people in the Kansas City region who are unemployed to apply for the positions.

He says the full-size truck segment is growing three times faster than industry average and is fastest-growing segment this year.

Joe Hinrichs, Ford president of The Americas, says “Our Built Ford Tough F-150 is America’s favorite pickup, and we are going to step up operations at Kansas City to ensure we have enough trucks to meet customer demand.”

The Kansas City Assembly Plant produces the Ford F-150 regular, SuperCab and SuperCrew and will produce the Ford Transit. The plant currently has 2,450 hourly employees working on two shifts and will add a third crew in the third quarter.

Retooling and expanding the facility to accommodate the increase in production is estimated to cost $1.1 billion.

 

House sends tax credit proposal to the Senate

The state House has passed legislation its sponsor calls a “starting point” for negotiations with the Senate on tax credits and incentives.

Representative Anne Zerr (photo courtesy, Tim Bommel, Missouri House Communications)

Representative Anne Zerr (photo courtesy, Tim Bommel, Missouri House Communications)

House Economic Development Committee chairwoman Anne Zerr (R-St. Charles) tells the House the legislation combines several issues that have been vetted by the chamber in recent years and in this session.

“This takes a broad-based approach to reviewing economic development tax credits. We’re capping some that aren’t currently capped, we’re cutting the cap on others and we’re extending some that are beneficial and worthy of continuance, sunset some whose effectiveness has ended and it adds four incentives that are targeted towards certain industries.”

The bill would set higher caps on tax credits for historic buildings and low-income housing development than Senate legislation. Also unlike the Senate, it would also extend a credit for developers who take up large amounts of land.

It includes streamlined business incentives and would call them “Missouri Works,” with a cap of $50 million dollars. It also contains incentives for data storage centers, exporting international cargo from Missouri airports, angel investments and research and development.

Zerr maintains the package would save the state money.

“With the cut of the tax credits in the bill we have a net savings of $73 million in reduced cap space. That’s different than authorization or issuances, I realize that.”

The legislation is HB 698.

Tax cut, tax increase, approved by Senate (AUDIO)

The sponsor of a major tax proposal in the state senate says it’s not a tax increase or a tax cut, although iti is actually both. 

Senator Will Kraus’s bill cuts personal and corporate income taxes by three-fourth of a cent in equal segments for each of the next five years. It also increases the sales tax by one-half cent in the same time. 

He says the bill is needed for Missouri to remain competitive with Kansas, which has enacted deep tax cuts.   Kraus calls it a new tax philosophy.  Kansas City Senator Jason Holsman calls it a “double bad bill.” Kraus, from Lee’s Summit, calls it “a change in philosophy” 

A legislative budget analyst says the” change in philosophy” could cost the state as much as $670-million a year.  Opponents say that would be on top of $800-million dollars in tax cuts enacted in the last ten years, most backed by claims they would trigger economic growth.  Independence Senator Paul LeVota says the only things those cuts have produced is a state that can’t pay for the things that companies want–schools, roads, and other infrastructure. 

The House gets its shot at the bill next.

AUDIO: final debate 44:35

AUDIO: debate, part 2 39:29