Letter to the Editor: Use scalpel, not ax in tax credit reform

Dear Editor,

As we approach the start of the 2014 legislative session, the phrase “tax credit reform” is rearing its head again. At Associated Industries of Missouri, we welcome true tax credit reform but feel wide-ranging tax cuts are truly the way to build the state’s economy in a sustained, healthy manner.

Tax credits are not inherently evil. They can serve a purpose. If tax credits spur the private sector to take on a task state government was going to have to do on its own, if they create jobs or if they help to retain jobs, AIM feels tax credits are a wise investment of taxpayer funds.

But AIM understands there might well be too many tax credit programs. We would like to see legislators move forward on tax credit reform with a scalpel, instead of an ax.

Tax credit programs can be costly, controversial and in some cases take many years to show their worth. We believe a more beneficial, and indeed easier, way to spur economic growth, retain existing jobs and create new ones is through broad-based tax cuts, that help not only the state’s largest employers, but also the state’s smallest.

Once again this coming legislative session, AIM will support legislation that delivers a measured but significant tax deduction for the state’s employers, including those that are midsize and small. It is in these smaller sectors of the business economy where most jobs are created and where tax cuts are most beneficial.

Again, we will fight the age-old battle with those who say taking money out of the state’s economy will hurt education, the poor and elderly. But it is only through economic growth spurred by these businesses that state aid for education, the poor and elderly will grow in the years to come.

To not cut taxes will be to stagnate, to lose business to other states that continue to reduce taxes and to fall further behind.

Broad-based tax cuts work. The proof is all around us. AIM is committed to continue the fight to lower our tax rates and to raise our state’s standard of living. To do anything less would break faith with all Missourians.    

—Ray McCarty, president/CEO, Associated Industries of Missouri