Brad Lager's Capitol Report: Strengthening Missouri’s Future

Since the opening day of the 2011 legislative session, creating an economic climate that facilitates job creation has been our number one priority. We are blessed that our great state continues to be a place where people want to live and raise their families. However, this cannot occur without high quality good paying jobs. While we have made many great strides already this session, we still have work to do in order to build the healthiest and most prosperous economy.

Every day, companies evaluate a number of factors when making decisions about where to locate their businesses. One of the most important factors is a state’s tax structure. For nearly 100 years, Missouri has levied a franchise tax on many businesses. We are one of the few states in the nation to still impose this additional tax. In order to make our tax structure more competitive, the General Assembly has passed a phase out of this tax over the next five years with it being completely eliminated in 2016. This will allow those businesses to keep more of their money to hire employees and reinvest in their companies.

The price and the reliability of energy are also major considerations when companies are looking to expand. Missouri’s energy generators do a great job of producing reliable power at a relatively affordable level. Although we have all seen increases in our monthly utility bills, the fact remains that Missouri has the 4th lowest rates in the nation. This makes Missouri an excellent choice for manufacturing companies and other businesses that have large energy needs. To ensure we retain this advantage in the future, Missouri will need a balanced energy portfolio which underscores why it is so important to have numerous energy generation options available to meet our future energy needs.

While taxes and utility rates are not the only concerns of business owners, they are significant costs that impact the growth and development of any venture. I believe that fair litigation, reasonable regulation and limited taxation is a formula that will encourage economic investment in our state. If successful, businesses will locate here and grow here, thereby creating new opportunities for the communities and people who live here.

As always, please feel free to call, email, or write with your ideas or concerns. The Capitol number is (573) 751-1415, my email is brad.lager@senate.mo.gov and my mailing address is Room 422, State Capitol Building, Jefferson City, MO 65101.