Presentation on theme: "Tax Credit Reform. Tax Credits Dollar for dollar reduction in state taxes Missouri currently has 69 different tax credits Some can be sold and redeemed."— Presentation transcript:
Tax Credit Reform
Tax Credits Dollar for dollar reduction in state taxes Missouri currently has 69 different tax credits Some can be sold and redeemed by individuals or corporations that have no interest or stake in the project for which the tax credits were issued. Outside of the appropriation ovesight and control.
Return on Investment Historic Tax Credits 21 cent return on every $1 invested Low-Income Housing 11 cent return on every $1 invested Early Childhood Education $7 return on every $1 invested
Missouris Standing State Support for Education Only nine states contribute less to K nd in per capita funding for K th in per capita funding for higher education Tax Credit Support (FY-09) 1 st in the nation in Historic Preservation Tax Credits 2 nd in the nation for Low-Income Housing Tax Credits
FY 13 Budget Issues With $685 million tax projected tax credits Formula under funded by $466 million Transportation funding cut by $60 million Career Ladder program eliminated Cuts continue in Parents as Teachers Program Higher education cut by $89 million and $16.9 million more in higher education scholarships.
One Example Tax Credit Reform SB-548 (Sen. Purgason) Would place a sunset clause on all tax credits in Missouri Voted out of Ways and Means Committee Missouri has 69 different tax credit programs that equate to about $700 million in spending each year! Has been estimated that this legislation could increase state revenues by $1.7 billion over the next 15 years.
Change the Conversation Ask Legislators to SUPPORT tax credit reform Ask Legislators to SUPPORT SB 548 Ask Legislators to put a higher priority on: – K-12 Education – Higher Education – Roads and Bridges