Mazzie Boyd Capitol Report – June 2, 2023

To the Great Constituents of District 2,

“Never leave that till tomorrow which you can do today.”

-Benjamin Franklin

Governor Parson has until July 14th to sign or veto any bill. If he does not sign it by July 14th, the bill automatically gets approved. There have been no new bills signed as of this week. I’ve had a few people reach out to ask for more clarity on what tax credits are and why I’m normally opposed to them.

A tax credit is an amount of money that taxpayers can subtract, dollar for dollar, from the income taxes they owe. There are three categories of tax credits: nonrefundable, refundable, and partially refundable. Nonrefundable tax credits are amounts directly deducted from an individual’s tax liability until the tax due equals $0. Refundable tax credits are the most beneficial credit because they’re paid out in full. This means that a taxpayer (regardless of their income or tax liability) is entitled to the entire amount of the credit, beyond a zero amount of tax due. Partially Refundable means it’s getting partially refunded as the name states. Tax credits are nothing new as the federal and state government have used credits for many years. William Gale from the Brookings Institute wrote in 1999: “The rise in the use of credits is probably best seen as the outcome of an ill-fated political compromise. Republicans like credits because they look like tax cuts. Democrats like them because they advance social policies without raising government spending. Both sides are getting a bad deal.”

The whole incentive in some regard is to use tax credits to help small businesses and folks with low income, but you can only get the credit if you have the money or have paid the taxes to do SO. Instead of giving an actual tax reduction, which we desperately need in State and Federal Government, they have come up with the tricky tax credit. The tax code shouldn’t be as inefficient as it already is and I believe by expanding credits we are also expanding the size of an already large government. We should be cutting spending and continuing to make sure the state of Missouri is being fiscally responsible for the money we do have and so should the US Federal Government. Not all tax credits are bad, as with everything. But as always, there is nothing free in Government and the money has to come from somewhere.

It’s a pleasure to serve and as always if you have any questions, please feel free to reach out to

my office at (573) 751-4285 or email me at [email protected].

All my Best,

Mazzie Boyd, State Representative for District 2