Panel Recommends Changes to Tax Credit Programs in Missouri
Date Posted: July 3, 2017
Posted In: News, Organizations,
From St. Louis Post-Dispatch: A special panel formed by Republican Gov. Eric Greitens says Missouri needs to overhaul how it doles out tax credits to developers.
In a 32-page report issued Friday, the GOP-dominated task force says its recommendations would prevent politically connected developers from gobbling up state resources before lawmakers can divvy up funds for other state priorities, including schools, public safety and other crucial programs.
“Tax credit reform will eliminate an unaccountable, unpredictable drain on state funds that drives up taxes for the average Missourian,” the report says.
Greitens, a political newcomer, created the Committee on Simple, Fair and Low Taxes via an executive order in January. The mission of the task force was to examine the state’s tax code, including possibly eliminating tax credits that siphon money away from other state spending.
It is the second panel to spend time on the issue in seven years. In 2010, Democratic Gov. Jay Nixon formed a similar panel to look at tax credits. But many recommendations from that task force ran aground amid political bickering and intense lobbying by developers.
For a state facing tight financial times, altering the tax credit system could pay dividends. In a report issued last week, Auditor Nicole Galloway, a Democrat, said tax breaks have cost Missouri $5.4 billion over the past decade.