JEFFERSON CITY, Mo. – With three days left in the 2012 legislative session, state Rep. Jerry Nolte, R-Gladstone, is working diligently to secure final passage of his plan to provide tax relief to all Missouri businesses. The Broad-Based Tax Relief Act of 2012 (HB 1639) would gradually reduce the state tax on all Missouri businesses including farms. The House approved the bill by a vote of 97 – 46 on May 3. It was sent to the Senate where the Ways and Means and Fiscal Oversight Committee voted it Do Pass this morning. It now moves to the Senate floor for discussion. Senator Chuck Purgason, Chairman of the Ways and Means and Fiscal Oversight Committee, will be handling the bill in the Senate.
“If we’re going to bring opportunity and prosperity to our state, we must create an atmosphere where entrepreneurs can create jobs,” said Nolte. “We are competing with other states for jobs, Kansas right now is in the process of lowering these same taxes. We’re in a jobs war and we have to decide if we want to engage in the battle or surrender to the states around us. This legislation gives us a powerful weapon that will help in winning the battle.”
Nolte’s bill would reduce the amount of income tax that businesses pay by 50 percent over a period of time if certain benchmarks are met. Nolte said the bill would ensure tax revenues collected are at or above levels in previous years before cuts to the income tax are put in place.
“With this we can ensure the tax cut is having the intended effect of spurring new investment and job creation by our businesses,” said Nolte. “If this new activity isn’t occurring and revenues aren’t increasing then the next phase of the tax cut will not take effect until jobs are created.”
Nolte said the Broad-Based Tax Relief Act is meant to build on the 2010 Manufacturing Jobs Act sponsored by Representative Nolte that was the catalyst for the $1.1 billion investment by Ford at its Claycomo location, the retention of 3,700 existing jobs and an additional 1,600 new jobs. In addition, GM announced it will invest $384 million with over 1600 jobs saved and created at its plant in .
“We have just a few days left to pass what I believe is the most effective plan for creating jobs here in Missouri,” said Nolte. “This legislation will give Missouri one of the lowest tax rates in the country. In turn, we will attract new businesses to Missouri while helping existing businesses and encouraging job growth.”