AIM thanks Senate Majority Leader Tom Dempsey for his leadership in passing the bill and for all the senators that took part in negotiations to clear the path for this bill.

Negotiations continue in the Senate on the issue.  We will keep you posted of developments.

Interestingly, 9 of the 16 Republican representatives voting “no” on the first round vote on the bill were from the Kansas City area.  Representatives Berry, Marshall, Brattin, Schieber, Neth, Silvey, Torpey, Lasater, and Solon all voted against the bill.  In fact, 22 of the 70 total votes against the bill were from representatives of the Kansas City area. Other Republicans voting against first round approval of the bill included Representatives Asbury, Bahr*, Barnes, Cookson*, Leach, Weter, and Wyatt.  Two Democrats that supported the bill last year switched their votes and voted against the bill on the first round vote this year (Representatives Shively and Swinger).

*UPDATE: On the final 3rd Reading vote, Representatives Bahr and Cookson voted in favor of the bill.

Some of the false arguments against the bill made it apparent that many that objected to the bill had not even read the bill.  There were claims that the bill did away with trials by jury.  There are two specific sections allowing any party to receive a jury trial.  There were objections to a section dealing with summary judgments - the summary judgment section was removed from the bill.  There were claims that this law did not comply with the federal law because of its impact on housing discrimination claims, when, in fact, the language specifically excludes housing discrimination claims from the provisions of the bill.  One representative even claimed whistle-blowers whose employers violated the law would not be protected, when the language specifically protects whistle-blowers whose employers have violated the law, regulations, and public policy.  At least one representative even claimed that the bill would allow religious persecution – this could not be further from the truth as the bill simply aligns Missouri law with the federal law and religious persecution is certainly not allowed under federal law.

It’s one thing to oppose a bill based on the actual language of the bill, but quite another to object to a bill without grounds.  Business men and women should ask their elected representatives and senators how they voted on this legislation and ask for their support the next time they have an opportunity to vote on the legislation.

The bill will now face one more vote before moving to the Senate.  Also, see news coverage by Missouri News Horizon, by clicking here.

Also today, AIM testified in support of an amendment to the sales and use tax laws to reduce the administrative burden and legal costs of taxpayers seeking refunds or attempting to resolve disputes with the Missouri Department of Revenue.  The language will be added to a bill that provides amnesty for taxpayers and boosts collection efforts for delinquent taxes.  AIM also incorporated language that requires DOR to send at least one notice of a tax delinquency by certified mail.  DOR had asked to be able to send ALL notices via regular mail.  The language will be included in a committee substitute for HB 1030, sponsored by Representative Tom Flanigan.

It is not a new idea to say that government does not create jobs, businesses do. The legislature has passed legislation to promote jobs by targeting particular types of businesses, sizes of businesses, and individuals who are considering creating a business. While the legislature has done a good job of promoting growth, the best way to promote business and restore prosperity is for government to relieve the burdens of over-regulation and over-taxation.

This year, Associated Industries of Missouri (AIM) asks every business leader to join in an effort to bring real tax reform to Missouri. House Bill 1639, titled the “Broad-Based Tax Relief Act of 2012”, will let employers keep and reinvest more of what they’ve earned. This legislation will cut the tax bill of every Missouri business, no matter how small or large, and regardless of the form of business organization they choose.

The “Broad-Based Tax Relief Act” proposes a fifty-percent reduction in business income tax through a five-year phase-in. The reforms would allow every Missouri business – whether an individual sole proprietorship, an LLC, an S-Corp, or major corporation – to declare half the business income made in a taxable year.

For an individual accountant who earns an annual $100,000 in business income for her consulting, it would cut her tax liability in half. Currently, she would be taxed at six percent on the $100,000 ($6,000 tax bill). After the full implementation of the “Broad-Based Tax Relief Act”, she would only owe $3,000. That is $3,000 more that she can provide to her family, buy health benefits, or reinvest in her business.

An S-corporation that makes $10 million in business income is also taxed at six percent. Paying $600,000 in taxes can really hinder a business’s ability to add jobs. But, after the Tax Relief Act, the business could reinvest $300,000 of that income now saved. And, the sky is the limit for major corporations that make billions of dollars in Missouri.

There are some in the legislature that feel a tax cut is not a wise decision with the state’s weakened economy and low tax revenues. Our bill sponsor, Representative Jerry Nolte (R-Gladstone) stated at our initial roll-out, “Now is the best time to roll out a tax cut, so we can provide tax relief to get this economy growing again. We will attract new businesses to Missouri while helping existing businesses and encouraging job growth.”

Join us in supporting the Broad-Based Tax Relief Act by contacting your local elected officials. Tell them that our government should provide incentives to every Missouri business – big or small, high-tech or shop floor, retail or restaurant – by supporting House Bill 1639.

The final version includes the shift in standard of proof in discrimination cases from a “contributing” factor to a “motivating” factor, establishes punitive damage caps, removes personal liability of employees, and ensures employees seeking whistle-blower protection are notifying proper authorities of violations of law, rules or public policy.

The bill will now face one additional vote by the full Senate before moving to the House for further consideration.  Associated Industries of Missouri thanks the sponsor, Senator Brad Lager and the leadership of the Senate for making this bill a priority and obtaining this first round approval.

Senate debate also stalled yesterday on the Paycheck Protection Act, SCS SB 553 and 435 sponsored by Senators Brown and Crowell.  The bill would submit to voters a proposal that would require a public employee’s permission before union dues could be used for political purposes and prevent the withholding of union dues or “fair share fees” from public employees’ paychecks.  Because the bill affects only public employees, AIM has not taken a position on this bill.

Although the Worker’s Compensation and Second Injury Fund Reform bill, SB 572 sponsored by Senate Majority Floor Leader Tom Dempsey, was approved by a Senate committee more than two weeks ago, the bill has yet to be added to the calendar of bills that may be debated in the Senate.  Discussions are continuing to develop the bill in a way that satisfies objections by Senator Jason Crowell, who stated in the committee hearing on the bill that he would prefer to end the Second Injury Fund, rather than continuing the Fund with reforms, and that he wanted to add language that was approved during Senate debate last year.  In particular, that language would prohibit subrogation of worker’s compensation payments when an employee obtains a judgment from a third party that is responsible for a toxic exposure that causes the employee’s injury.  This bill is a high priority for Associated Industries of Missouri and is also part of the Business Climate Agenda for 2012.

We will continue to keep you posted of any progress, or lack thereof, on our priority bills.  Please be sure to enter your email in the area to the right of our blog page at a4gb.wordpress.com to receive updates via email automatically.