• Publications
    • Essay
    • Case Study
    • Policy Study
    • Report
    • Testimony
    • Other
    • Newsletter
  • Blog
    • Daily Blog
    • Podcasts and Radio
    • Video
    • Infographics
    • Commentary / Op-Eds
    • Events
  • Events
  • Donate
  • About
    • Our Team
    • Show-Me Institute Board of Directors
    • Fellows and Scholars
    • Our Authors
    • Jobs
  • Contact
  • Explore Topics
    • Education
      • Accountability
      • Education Finance
      • Performance
      • School Choice
    • Health Care
      • Free-Market Reform
      • Medicaid
    • Corporate Welfare
      • Special Taxing Districts
      • Subsidies
      • Tax Credits
    • Labor
      • Government Unions
      • Public Pensions
    • State and Local Government
      • Budget and Spending
      • Courts
      • Criminal Justice
      • Municipal Policy
      • Property Rights
      • Transparency
      • Transportation
    • Economy
      • Business Climate
      • Energy
      • Minimum Wage
      • Privatization
      • Regulation
      • Taxes
      • Welfare
      • Workforce
Show Me InstituteShow Me Institute
Show Me InstituteShow Me Institute
Support the Show-Me Institute
  • Publications
    • Essay
    • Case Study
    • Policy Study
    • Report
    • Testimony
    • Other
    • Newsletter
  • Blog
    • Daily Blog
    • Podcasts and Radio
    • Video
    • Infographics
    • Commentary / Op-Eds
    • Events
  • Events
  • Donate
  • About
    • Our Team
    • Show-Me Institute Board of Directors
    • Fellows and Scholars
    • Our Authors
    • Jobs
  • Contact
  • Explore Topics
    • Education
      • Accountability
      • Education Finance
      • Performance
      • School Choice
    • Health Care
      • Free-Market Reform
      • Medicaid
    • Corporate Welfare
      • Special Taxing Districts
      • Subsidies
      • Tax Credits
    • Labor
      • Government Unions
      • Public Pensions
    • State and Local Government
      • Budget and Spending
      • Courts
      • Criminal Justice
      • Municipal Policy
      • Property Rights
      • Transparency
      • Transportation
    • Economy
      • Business Climate
      • Energy
      • Minimum Wage
      • Privatization
      • Regulation
      • Taxes
      • Welfare
      • Workforce
Corporate Welfare / Subsidies

Not All Ideas Are Bad – Some Are Actually Good

By Michael Rathbone on Feb 8, 2013

You might think that all I do is complain about bad ideas coming out of Jefferson City. For the most part, you would be correct. However, on occasion, I do compliment good ideas when I see them. Take, for example, Missouri House Bill 380. HB 380 would completely eliminate the tax on pass-through entities and introduce a $100 million cap on economic development tax credits.

I have written a lot about the need to respond to Kansas’ tax cut. By eliminating the tax on pass-through entities, many Missouri businesses would be able to keep more of their money to invest in new projects and even lower prices for customers. In addition, it would not only make Missouri more attractive to businesses outside the state, it would also serve as an incentive for in-state businesses to remain here. HB 380 would partially mitigate any projected revenue shortfall by placing a cap on economic development tax credits. If the plan had been in place last year, the cap would have saved the state more than $300 million.

Even if there was not a proposed tax cut in HB 380, the proposed tax credit cap in the measure is, in and of itself, a good idea. Getting the government less involved in picking winners and losers through the tax code is a worthy goal. By substantially cutting down on the number of credits that will be issued, the government’s involvement in economic development is substantially diminished. Coupling a cap with an elimination of the tax on pass-through entities makes the bill even better. There is a lot to like in HB 380 and I hope Missouri experiences some kind of tax relief.

My colleague Patrick Ishmael and I just released a new paper on the topic of pass-through entities, “Passing Through Missouri: Left Behind On Taxes?” You can read the paper here.

  • Share
  • Tweet
  • Share
  • Email
  • Print
About the author

Michael Rathbone

More about this author >
    Footer Logo
    Support the Show-Me-Institute
    Showmeinstitute.org is brought to you by Show-Me Institute and Show-Me Opportunity.
    • Publications
    • Blog
    • Events
    • Donate
    • About
    • Contact

    Reprint permission for Show-Me Institute publications and commentaries is hereby granted, provided that proper credit is given to the author. We request, but do not require, that those who reprint our material notify us of publication for our records: [email protected]

    Mission Statement
    Advancing liberty with responsibility by promoting market solutions for Missouri public policy.

    © Copyright 2023 All Rights Reserved