Capitol Report: Tax credit accountability

In recent years, we have seen an explosion of tax credit programs here in Missouri. They have become the favorite tool for economic development and in some cases, like the Quality Jobs program, have been very successful. As the number of programs and the number of people asking for credits has grown, the state’s liabilities for these credits have grown in to the hundreds of millions of dollars each year. Unlike the appropriations process where the users of state resources have to defend how they spend the state’s money, tax credit recipients never have to come back before the General Assembly for review or accountability. For the last three years, I have fought for greater scrutiny of these programs as I believe that every dollar of the taxpayer’s money that is being spent or invested should be accountable to and in the best interest of the taxpayers.

This past week, the Joint Committee on Tax policy, held its final meeting of 2008 and made recommendations for many of Missouri’s tax credit programs. When the legislature convenes in January, I will put the recommendations of the committee in to legislation as we work to promote greater accountability and responsibility within our tax policy. Missourians deserve to know that the tax credits being used are promoting growth and prosperity that benefit our citizens and not just special interest. Missourians do not need more programs that recklessly hand out tax dollars and negatively impact the ability of the state to fund our critical needs.

While the legislature debates how we are going to fund education, transportation, and basic responsibilities during these tough economic times, the tax credit spigot continues to flow. Tax credits can be a valuable tool for economic growth, but the reality is that every dollar the state spends in tax credits is one less dollar that the legislature can spend for education, transportation, or on our elderly. Tax credits need to have a real return on investment and the projects that use tax credits must produce a net benefit for the people of Missouri. Since the day you sent me to Jefferson City, I have fought for greater accountability and scrutiny in Missouri’s state government and I remain committed to ensuring Missouri’s taxpayers benefit from the issuance of Missouri tax credits.

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 [email protected] and my mailing address is Room 429, State Capitol Building, Jefferson City, MO 65101.