Small businesses are some of the greatest job creators in Missouri. State and federal data show more than 75 percent of Missouri businesses have fewer than 10 employees. While small, these businesses are critical to our state’s economy, providing employment for more than 235,000 Missouri workers.
Today, Gov. Jay Nixon has an opportunity to help these Missouri employers and spur economic growth through reducing their tax burden. Senate Bill 509, which awaits the governor’s signature, would gradually lower the state’s income tax by nearly 10 percent and provide a new 25 percent deduction on an individual’s business income. The changes would not take effect until 2017, and require $750 million in new revenue to be created before the cuts take full effect.
Yet, Gov. Nixon is expected to veto the bill this week, denying this assistance as Missouri’s small employers seek to grow and create more jobs. In addition, a veto would hurt efforts by the Missouri General Assembly and the Missouri Chamber of Commerce and Industry to ensure our state has a competitive tax climate for business growth.
“It’s time for our governor to stand up and act as an ally for our state’s small businesses. We can’t grow our economy by ignoring this important class of employers and rejecting—again—their ability to access tax relief,” said Daniel P. Mehan, Missouri Chamber president and CEO. “A veto of Senate Bill 509 is a direct blow to more than 75 percent of the employers in Missouri. We urge the governor to change his rhetoric and sign Senate Bill 509. This is the kind of stimulus that Missouri needs.”