Nixon: Missouri employers getting multi-million dollar tax break

Gov. Jay Nixon said Missouri employers will soon see a tax reduction — to the tune of nearly $200 million.

Nixon announced Tuesday that this $186 million federal tax cut comes from the U.S. Department of Labor.

He said by retiring Missouri’s obligation to the unemployment insurance trust fund six months early, Missouri employees will each save about $84 per year.

Nixon also credited the strong and growing economy for the tax break.

“Missouri’s economy continues to pick up steam,” he said. “Personal income is up, wages are up, and unemployment continues to fall.”

In fact, Nixon said unemployment levels, currently at 5.9 percent in Missouri, are the lowest they’ve been since 2008.

The tax reduction will happen in the tax year of 2014.

This comes after his State of the State address, when Nixon talked about phasing out the corporate franchise tax, saving employers $70 million per year.

That tax will be completely eliminated in two years.