June 28, 2016 – The Missouri Times reports Rep. Scott Fitzpatrick has noted the odd timing of accelerated refunds – right before the end of the fiscal year. That could mean there may be no tax cut for Missouri taxpayers, including business taxpayers, after all – at least not this year. You will recall AIM fought for and passed an income tax cut for all taxpayers, including business taxpayers. That law required an increase of $150 million in net general revenue over the highest amount of net general revenue in the previous three fiscal years. Governor Nixon vetoed the measure and we were successful in overriding his veto. 2017 is the first year the tax cut could be effective. Accelerating refunds lowers state net general revenues right before the end of the fiscal year, which is tomorrow, June 30. Whether this turns out to nix the tax cut or not will be known when the Office of Administration releases the 2016
A Publication of the National Association of Manufacturers Associated Industries of Missouri is the sole official designated partner of the National Association of Manufacturers in Missouri. MONDAY ECONOMIC REPORT June 27, 2016 The vote for the United Kingdom to leave the European Union—the so-called “Brexit”—dominated headlines on Friday. For many, this was a surprising result, with many analysts expecting pragmatism to win at the end of the day. For their part, financial markets had already priced-in keeping the United Kingdom in the Eurozone, with the British pound soaring early last week to its highest point year-to-date and the Dow Jones Industrial Average crossing 18,000 for the first time since April 27. With Brexit succeeding instead, the markets gave back some of those equity gains, with the largest declines seen in the United Kingdom itself—at least for now. For instance, one British pound exchanged for $1.3667 on June 22, and it closed at $1.3660 on June 24, falling to a level
June 24, 2016 -The National Association of Manufacturers’ Senior Vice President of Communications, Erin Streeter, sent the following message regarding the decision by British voters to exit the European Union: “The unexpected British vote to exit the European Union and British Prime Minister David Cameron’s subsequent announcement have implications for international trade and investment impacting the global manufacturing economy. Since talk of this critical vote began, the National Association of Manufacturers (NAM) has been monitoring the situation closely, and been in touch with our members. This historic decision could have a major impact on manufacturing in the United States. That’s why some of our leading experts are weighing in today with blogs answering questions manufacturers want to know right now. Economic Impact: NAM Chief Economist Chad Moutray, Ph.D., CBE Trade Impact: NAM Vice President of International Economic Affairs Linda Dempsey It may take many months or years to fully realize the consequences of ‘Brexit.’ Stay updated by following the NAM
CNN Money has the story of a new back brace, assisted lifting apparatus that may help prevent worker injuries from lifting heavy weights. Click here for the story.
June 23, 2016 – The Hill reported late Thursday voters in Britain have spoken: Britain should pull out of the European Union. Click here for the full story. Also, the St. Louis Business Journal reports the prime minister will step down and analyzes the impact on stock markets here and abroad. Click here for the full story. Also, The Hill has more on the involvement of President Obama in the U.K. election and his comments after the election. Click here for the full story.
From AIM member Husch Blackwell LLP: Effective July 1, 2016, any private employer that receives a broad array of union-related advice or materials from a law firm or consultant must disclose that information to the government. However, the U.S. Department of Labor (DOL) recently intimated that the reporting requirement likely will not apply to employers that have a multiyear agreement with a law firm in place by June 30, 2016. CLICK HERE TO READ THE FULL ALERT
June 23, 2016 – In the second blow to the Obama Administration’s executive power in as many days, the U.S. Supreme Court has tied on the question of whether to uphold Obama’s immigration policies. The tie means a lower court ruling blocking implementation of Obama’s immigration policy will stand. This is the second such decision this week dealing a blow to the Obama administration’s strategy of simply enacting their wishes through executive orders and rules, rather than passing laws through Congress. The President publicly stated his intentions by saying if Congress failed to act, he would do so “on my own” in this Bloomberg video. Apparently, federal courts are giving more weight to the U.S. Constitution than President Obama and his administration. Read more here… UPDATE: President Obama issued this statement following the Supreme Court’s action (because this was from a live feed, you need to click in the middle of the video at about the -27:00 minute mark to
June 22, 2016 – Multiple sources report a federal judge has struck down a federal regulation on fracking. While that is interesting, even more interesting is the reasoning used by the Court in rejecting the rule. Judge Scott Skavdahl of the District Court of Wyoming held, “Congress has not delegated to the Department of the Interior the authority to regulate hydraulic fracturing. The effort to do so through the Fracking Rule is in excess of its statutory authority and contrary to the law.” “Congress’ inability or unwillingness to pass a law desired by the executive branch does not default authority to the executive branch to act independently, regardless of whether hydraulic fracturing is good or bad for the environment or the citizens of the United States,” he wrote. We wonder how many of the Obama administration’s recent efforts to bypass Congress by enacting regulations could fall under the same reasoning, if applied consistently by the Courts? Click here to read
CLICK HERE FOR THE FULL MISSOURI BUSINESS TODAY SITE WITH LINKS TO THE STORIES from the Missouri Department of Economic Development.
From the Missouri Times: JEFFERSON CITY, Mo. – The Missouri Department of Economic Development released a few new economic indicators Monday, which told of some good news for the state’s manufacturing industry. The state’s purchasing manager’s index (PMI) spiked to 57 in May, its highest mark since August 2014, according to the Institute for Supply Management PMI measures the economic health of the manufacturing sector using a combination of factors like new orders, production, supplier delivery times, backlogs, inventories, prices, employment, import orders and export, and any figure over 50 represents an expansion in the manufacturing sector from the previous marking. Missouri spiked 6.9 points from April, and it was at its lowest point in the last two years in December of 2014, when it sank all the way to 40. The score had slumped steadily for two years before it hit that rock bottom number. However, just five months later, it looks well on the way to recovery. The article also contains comparisons