Guest column: Bill helps Mo. stay competitive

The state of Missouri is at a critical crossroads, a point at which our economic future rests in the hands of the General Assembly, a group of individuals elected to represent the best interest of their constituents.

This past legislative session, the Legislature did just that when both houses passed House Bill 253, which provides for the first state income tax reduction in nearly 100 years. Despite passage by wide margins, in what Kansas City Star editorial board member Barbara Shelly has appropriately coined, "Nixon's Summer of the Veto," Gov. Jay Nixon single-handedly overturned the will of the people, as reflected by the public officials Missourians have elected to represent them, attempting to kill passage of this vital, historic legislation.

On Wednesday, members of both houses will convene in Jefferson City, Mo., in a veto session, where votes will be cast to either affirm Gov. Nixon's veto, or uphold the Legislature's intended passage of HB253, a move that will help Missouri remain competitive with other states that either don't have an income tax or are taking steps to reform their income tax codes. Among them, Kansas is most notable, having reduced its individual income tax and completely eliminated it for owners of LLCs and subchapter S Corporations, thereby making the financial picture in Kansas much more attractive to residents and businesses alike.

In anticipation of Kansas' new income-tax code taking effect Jan. 1, the state saw a 15 percent increase in LLC filings in the months leading up to the New Year. All indications are that Kansas' approach is spot-on, as supported by the Kansas Department of Revenue's announcement June 28 that revenue receipts were $159.6 million more than had been collected during the prior fiscal year.

HB253 is a well thought-out, carefully crafted bill. It will modestly reduce the individual income tax over a 10-year period and is designed to stimulate growth not only by allowing hardworking Missourians to keep more of what they earn but also by reducing the tax burdens on businesses, phasing in a 50 percent income tax deduction for small businesses over a five-year period and reducing the corporate income tax rate by 3 percent over the next decade.

Bearing in mind that good is the enemy of great, the governor seems content to sit back and let good steal our great. Supporters of HB253, on the other hand, recognize that great states grow, yet Missouri has been bleeding jobs and wealth and population to other states and there is no reason to believe this trend won't continue unless we take steps to change that. Passage of HB253 will go a long way toward putting Missouri back on the path to greatness.

Bev Randles is the chairman of the Missouri Club for Growth, a not-for-profit group dedicated to limited government and pro-growth economic principles.