Sunday, March 6, 2011

A Moment with Mike for March 9th, 2011

Several bills were third read and passed out of the House last week. Most of them were focused on issues that will help the business environment in Missouri and will help us accomplish our goal of creating jobs and expanding opportunities in our state. Others dealt with issues of inappropriate behavior and crimes that are a blight on our country and on society.

In January, business leaders from across the state and some of our more prominent business organizations set forth an agenda that they felt would make Missouri a more attractive and competitive place to do business. Two bills that passed out of the House last week fit into that category and will hopefully help protect and create jobs in Missouri.

Our business organizations say that our current tax structure is not conducive to attracting new businesses or allowing existing ones to grow. That is in part due to the fact that Missouri is one of the few states to have both a corporate income tax and corporate franchise tax, which results in double taxation for corporations doing business within our borders. The franchise tax, which is a tax on a corporation’s assets such as inventory and buildings, has been in existence since 1917. This tax has been reduced over the years, but legislation passed last week would phase this tax out over the next five years until it is entirely repealed in 2016. We believe this change will be a boost to our economic development efforts as our lower tax burden makes Missouri a more attractive location to do business.

Another bill approved last week which will help even the playing field with other states competing with us for jobs would remove the minimum wage escalator that increases pay based on inflation. Since 2006 the minimum wage has increased three times for a total increase of 41 percent. During that same period of time, businesses across our state have struggled to make ends meet. While we want our workers to be paid a decent wage, we have to balance. When businesses can’t make payroll, they are forced to lay off workers or raise prices on their product, neither of which is good for the consumer. HB 61 would cap our minimum wage at the federal rate, which is where it is at this time. Our state cannot sustain unchecked, unlimited growth in the minimum wage and still create and protect jobs.

In other legislative action, HB 276, a bill that would help protect families and friends mourning a loss of a loved one from suffering emotional distress as a result of protestors, was approved. This bill is a direct response to the actions of a radical group which has been protesting and disrupting funerals across the country. While the courts have ruled similar measures unconstitutional, we believe it is important to do all we can to protect our citizens from these despicable acts.

HB 214, also approved last week, would strengthen the laws and give our law enforcement officials the tools necessary to fight the crimes of human trafficking and sexual exploitation. Unfortunately these crimes that many think only go on in other parts of the world are occurring more frequently here in Missouri. Women and children have had their lives destroyed by individuals who exploited them for profit and we simply cannot tolerate that within our state.

If you have questions, you may reach me at my Capitol number 573-751-9465, at the local district number, 660-582-4014, by email at mike.thomson@house.mo.gov or by mail at Room 401B State Capitol Building, Jefferson City, MO 65101

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