Helping Businesses Create Jobs

NEWS RELEASE    ---     From the Office of Representative Shelley Keeney - 156^th District

FOR IMMEDIATE RELEASE:	CONTACT:    Rep. Shelley Keeney
March 4, 2011	(573) 751-5912

Helping  Businesses Create Jobs

This week the Missouri House took important action to end one form of double-taxation. Currently, Missouri franchised businesses are taxed both on their income and the value of their assets and stock. As an example, this would be like getting taxed on your yearly income, and additionally on all the net income you’ve made your entire life.

 Missouri’s additional tax on corporations is called the franchise tax.  While Missouri has both corporate franchise and income taxes, many states simply have one or the other.  As a result, when national corporations or smaller franchises are choosing where to locate, Missouri’s double taxation often scares them away.
 
This session we have focused primarily on creating jobs in our state. We started the session with a plan to turn the state economy around by fundamentally changing the business environment and HB 76 is part of it. HB 76 phases out the state’s franchise tax over a period of five years.  Without the franchise tax, our state will become more attractive to businesses looking to move here and create jobs.

 Missouri only collects about 3% of its revenue from corporate taxes of any kind and the franchise tax is only part of this collection. Some argue this tax cut will reduce revenues – however, we believe it will attract more businesses to open, expand or relocate and, therefore, create more jobs.  So, when more Missourians are employed and their wages are supporting families; this revenue is well worth it, not to mention the positive impact of these new workers spending money.

 In addition, Missouri entrepreneur’s operate on a shoestring budget, and a little bit of tax here or there is the difference between hiring someone new or closing down.  The elimination of this double tax will only help our small business owners.
 
In the next fiscal year, HB 76 is expected to save Missouri businesses $16,554,0542.  That a lot of jobs.  The year after that, HB 76 would save Missouri businesses upwards of $35,000,000.  By the time the franchise tax is completely phased-out in five years, Missouri businesses will be saving around $85,000,000 a year. That’s 850 new $100,000 jobs that could be created, or 1,700 new $50,000 jobs, and so on.
 
I had the opportunity to attend Fredericktown High School's "Woman-less" Pageant Saturday evening.  This event was a lot of fun and helped support a good cause, Project Graduation.  Thanks to all the good-spirited guys who took part in the event! 

Please let me know if you would like to receive my weekly updates via electronic E-Mail, by sending an email with your name to: Shelley.Keeney@house.mo.gov

As always, I appreciate hearing your comments, opinions and concerns about state government.  Please feel free to contact me in Jefferson City at (573) 751-5912.  You may write me at: Shelley Keeney; Missouri House of Representatives; State Capitol -- Room 313; Jefferson City, MO 65101-6806 or email me.