JEFFERSON CITY — Tax policy was again front and center in the Missouri Capitol the past two weeks as the Senate took an important step towards passing the biggest tax overhaul the state has seen in nearly 100 years. Missouri’s neighbors and other states around the country are reforming their tax codes and lowering the tax burden on their citizens. Eighteen states have cut taxes in one form or another since 2013. Missourians, on the other hand, are working under a tax code that is less competitive and that is hindering job and wage growth. Missouri is ranked 37th in the nation in GDP growth per capita and we have a comparatively high personal income tax rate.

Senate Bill 509 would gradually cut personal and corporate state income taxes on hard-working Missourians while creating capital for job creators across the state. Small business owners and taxpayers would be able to deduct up to 25 percent of their business income and, Missourians making less than $20,000 could exempt an additional $500 from their adjusted gross income when filing their state taxes. The bill also has a “trigger” provision that requires $150 million in increased revenue each year, making the tax cuts effective only if state revenues continue to rise. This protects other important obligations like public education and roads.

This bill will make our state one of the most competitive in the country by promoting growth and prosperity which will bring more investment, economic activity and jobs to our state. Small-business is the backbone of our state economy. They make up more than 90 percent of our employers in the state, and this tax cut will give them the opportunity to reinvest in their business and provide jobs to their fellow citizens. Hard-working Missourians and businesses are due this tax cut and it is my hope that the House will quickly take up and pass this bill so more of citizens can keep the money they earn.

In other action this week, the Senate Commerce, Consumer Protection, Energy and the Environment Committee heard my Senate Bill 839 related to a proposed Arkansas power line by Southwestern Electric Power Company (SWEPCO) that would pass through southern Barry and McDonald counties.

On Jan. 17, an Arkansas Public Service Commission Administrative Law judge endorsed Route 109 as the preferred route to address power delivery in northwest Arkansas. Originally, SWEPCO proposed six routes: five in Arkansas and Route 109. SWEPCO’s preferred route was actually Route 33 through Benton and Carroll counties. My bill would prohibit SWEPCO from using eminent domain, meaning the company would be unable to forcibly take the land needed for construction of the transmission line. Instead, it would have to get the approval of every land owner along the route.

I think the committee hearing went well and was beneficial for the committee members. There were questions about the necessity of running the line through Missouri when other more cost-effective and shorter routes are available in Arkansas. There was also concern that this would create a troubling precedent, by allowing another state to dictate transmission line routes in Missouri. The fact is that most of the landowners affected by the construction of this line don’t even know someone might soon be coming to take their land. SWEPCO has held no public hearings in Barry or McDonald counties and no Missouri citizen would directly receive power from this line. It seems pretty obvious what we are dealing with here: We have one state that wants to avoid doing something unpopular so they are pushing off their problem on Missouri property owners instead of dealing with this in their own backyard.

All three McDonald County commissioners testified in favor of the bill as well as Reps. Fitzpatrick and Lant. All have been great allies in opposing this attack on our property rights. I look forward to the committee voting this bill out soon and sending it to the Senate floor for full debate.  

As always, I welcome your ideas, questions and concerns about Missouri government. You may contact me at the State Capitol as follows: (573) 751-1480, david.sater@senate.mo.gov or by writing to Senator David Sater, Missouri State Capitol, Room 433, Jefferson City, MO 65101.