In his third State of the State Address, Governor Jay Nixon addressed the members of Missouri’s General Assembly, other state elected officials, and those Missourians watching on television. He stressed the need for education, sound fiscal government, broadband access, but more so the need for Missouri to fight “every day for every job.”

The governor used a majority of the speech to stress job creation and retention. He commented, “My focus is crystal clear. By fighting every day for every job, we are turning this economy around. The recession that began three years ago cast a long shadow across our nation. Millions of Americans are still unemployed. And while there are signs that our economy is beginning to turn the corner, I won’t be satisfied until all Missourians can provide for their families.”

“Associated Industries of Missouri has worked diligently to promote job growth in this difficult economy,” said Ray McCarty, President of Associated Industries of Missouri (AIM). “Last night, the governor discussed his Compete Missouri Initiatives to invest in educational opportunities to improve Missouri’s workforce. He included incentives for small businesses and the need for more ‘reliable, affordable energy to grow and prosper’. But there are additional opportunities that Missouri business can capitalize on - at no cost to the state: the Fix the Six Priorities and AIM’s Restore Prosperity in Missouri Agenda.”

AIM took steps this week to ensure the advancement of one of those Restore Prosperity initiatives. Senator Eric Schmitt (R-St. Louis County) filed Senate Bill 146 to phase-in a 50 percent Business Income Tax Deduction.

“This is the type of broad-based tax relief that will help encourage investment in Missouri and put Missourians back to work,” said Senator Schmitt, Chairman of the Senate Jobs and Economic Development Committee.

The legislation is designed to provide an income tax deduction for business income. Businesses of all sizes and types would benefit from the tax break, and the benefit would be phased-in over a period of five years. In tax year 2011, taxpayers would deduct 10 percent of business income from their taxable income. The phase-in would increase 10 percent each year until 2015 when the phase-in would complete at 50 percent. Similar legislation has been filed in the House. House Bill 78 was filed by Representative Jerry Nolte (R-Gladstone).

In addition to the Governor’s address this week and the filing of the business income tax deduction, AIM President Ray McCarty joined Ford Motor Company and Gov. Nixon when the company announced Tuesday that it would invest in employment retention and commitment to build a new product at the Ford facility in Claycomo, Mo.

On Tuesday, AIM President McCarty commented, “I had the privilege of co-chairing the Ford 2020 Task Force was a united effort of employer and employee organizations, including Associated Industries of Missouri, United Auto Workers, Clay County Economic Development Council, auto dealers and a number of local government officials. With strong leadership from Representative Jerry Nolte and Senator Luann Ridgeway and strong support from Governor Nixon, we worked hard together to pass the Auto Manufacturing Jobs Act and today we are seeing the fruits of everyone’s efforts.”

To add to the pro-jobs week, the Missouri House of Representatives passed the “Big Government Get Off My Back Act” today by a vote of 136 in favor and 21 against. House Bill 45, sponsored by Rep. Denny Hoskins, provides a $10,000 tax deduction to Missouri employers who expand to provide new full-time jobs to willing Missourians.  The legislation provides a $20,000 deduction for responsible businesses that provide health benefits to those new full-time employees.

With the passage of House Bill 45, the filing of Senate Bill 146, the Governor’s speech and the Ford announcement, it was a great week for business. Associated Industries of Missouri has been there every step of the way. Joining Ford and Gov. Nixon for the Tuesday announcement and working with Rep. Nolte and Sen. Schmitt to file the business income tax deduction, AIM has worked hard to fulfill its pledge and mission to Missouri business. If there are any business issues you would like AIM to support this legislative cycle, please inform the AIM office what is necessary to help your business.