WASHINGTON, D.C. – As part of his ongoing efforts to promote American innovation and boost U.S. manufacturing in an increasingly global economy, U.S. Senator Roy Blunt (Mo.) applauded the Senate Finance Committee’s passage of bipartisan legislation that would allow startup companies and small businesses to access the successful Research and Development (R&D) Tax Credit.

Blunt originally co-sponsored the “Startup Innovation Credit Act,” which was introduced by U.S. Senators Chris Coons (Del.) and Mike Enzi (Wyo.) to allow innovative startups to claim the R&D tax credit against their payroll taxes. This week, a version of the bipartisan bill was passed by the Senate Finance Committee as an amendment to the annual tax-credit extension bill.

“Encouraging American entrepreneurs and startups to invest in research and development will help America compete around the world and create much-needed jobs here at home,” said Blunt. “I’m pleased this common-sense provision is moving forward, and I’ll keep working with my colleagues on both sides of the aisle to pass pro-growth policies that encourage innovation and help put more people back to work.”

Blunt and U.S. Senator Sherrod Brown (Ohio) also introduced the “Revitalize American Manufacturing and Innovation Act,” which would strengthen American innovation and position the United States as the global leader in advanced manufacturing by establishing a Network for Manufacturing Innovation (NMI).

Jefferson City—A Cole County Circuit Court  has rejected the plaintiffs’ attempt to stop the Department of Revenue from accepting jointly-filed state tax returns from all legally married couples who file joint federal tax returns, as required under Missouri law.  The ruling provides certainty to Missourians who are preparing to file their taxes before the April 15 deadline.

Missouri is one of a number of states whose tax code is directly tied to that of the federal government and, under Missouri law, legally married couples who file joint federal tax returns with the Internal Revenue Service must also file joint state returns with the state Department of Revenue.

The U.S. Department of the Treasury and the Internal Revenue Service ruled in August that legally married same-sex couples would be treated as married for federal tax purposes, regardless of where the couple lives.

Missouri tax law states that couples filing a “joint federal income tax return shall file a combined return,” and that any terms used in Missouri tax law shall have the same meaning “as when used in a comparable context in the laws of the United States relating to federal income taxes.”

In accordance with Missouri law, Gov. Nixon issued an executive order in November directing the Missouri Department of Revenue to accept joint state tax returns from legally married couples who file jointly at the federal level.

TOPEKA – Gov. Sam Brownback today issued the following statement on the school finance bill passed by the Kansas House of Representatives:

“The school finance bill that passed the Kansas House today with bipartisan support increases funding to Kansas schools by $83 million and includes $74 million of property tax relief.  I am pleased with the broad bipartisan support for a plan that puts money into the classrooms where it best benefits students and teachers.

“Legislation offered in February by House Democrats would have cost taxpayers more while sending only a very small portion of the additional funding to the classroom.  This is unacceptable.  We can and will do better. We will send the money to the classroom to help teachers teach and students learn.

“I, along with the Speaker of the House and President of the Senate, am committed to providing a solution that satisfies the court order by the end of the regular session.  We will fix this.  And we will do so in a way that ensures every taxpayer dollar is spent as effectively and efficiently as possible.

“I appreciate the efforts of the legislature, and especially the hard work and leadership of Speaker Merrick and President Wagle. We have an opportunity for progress.

“I will continue to work with legislative leadership until a bill reaches my desk.”

JEFFERSON CITY, Mo. (AP) — Missouri lawmakers are advocating for more restrictions on welfare recipients after a state audit raised questions over whether benefits are being used properly.

The report identified more than 300 cases in which Missouri welfare recipients spent their benefits exclusively outside the state during a three-month period.

Lawmakers are also debating whether to loosen restrictions on where welfare money can be spent and who qualifies for assistance.

The House measure would allow people to use welfare dollars to buy food at liquor stores. A Senate bill would open the federal food stamps program to some drug felons.

DETROIT (AP) — Mazda is recalling 42,000 Mazda6 cars in the U.S. because spiders can weave a web in a vent hose and cause the fuel tank to crack.

The recall involves cars from the 2010 through 2012 model years equipped with 2.5-liter engines.

The yellow sac spider, which is attracted to hydrocarbons, builds webs that cause pressure to build in the fuel tank. That increases the risk of fuel leaks and fire.

Mazda recalled cars in 2011 for the same problem. It put covers on the vent line, but has found spiders can get past them.

Mazda will update the cars’ software for free beginning this month to ensure that the fuel tank pressure doesn’t build up.

Mazda says no injuries or fires have been reported due to the issue.

K-State Research and Extension

MANHATTAN – As a professor in Kansas State University’s Department of Agricultural Economics, Art Barnaby has given countless presentations and fielded even more questions about managing risk over the years. And the questions continue as details of the new farm bill unfold.

Barnaby’s answers to questions he’s been asked on the five-year Agricultural Act of 2014, are available online HERE.

It’s clear that farmers have important choices to make in the coming months, not the least of which is the decision to choose one of two safety net programs, the Agriculture Risk Coverage or Price Loss Coverage. That is what Barnaby has been asked most – which is the best option?

Agriculture Risk Coverage covers what farmers would lose before their regular crop insurance kicks in. It provides protection when crop revenue falls 14 percent below a five-year rolling Olympic (high and low removed) average benchmark. The producer chooses whether the benchmark is based on county yield X crop year average prices or his or her individual crop yield X price.

With Price Loss Coverage, farmers will receive payments if the crop price falls below certain “reference” prices.

“ARC is effectively a free revenue insurance guarantee and the PLC is a free put, with the government paying the entire premium costs,” said Barnaby, who is a risk management specialist with K-State Research and Extension. “At current crop prices, the market is saying the ARC has more value than PLC, but that does not guarantee that ARC will pay more than PLC on corn and soybeans.”

He acknowledged, however, that it’s unclear if there is a best plan – ARC or PLC – because producers will not sign up until this fall or later: “The program that will pay the most will be determined by price and yield. By sign-up, we will know the wheat yield and half of the marketing year average wheat price on the 2014 crop. We will also have a good estimate of the yields for spring-planted crops, so all this could change.”

Barnaby said if long-term price forecasts by the University of Missouri’s Food and Agricultural Policy Research Institute (FAPRI) hold true for the 2014 and 2015 crops, payments would be generated under the county-ARC program compared to PLC, but that trend reverses in the later years of the five years that the new law is in effect.

Higher yields reduce or eliminate ARC payments, and most estimates are based on long-run average trend yields, he said.

“So a very risk averse person might be willing to forego county-ARC payments in the early years to avoid a catastrophic price decline in the years 2017 and 2018 when PLC might generate higher payments than county-ARC,” he said. “Most farmers are accustomed to risk and I doubt that catastrophic price protection will be the deciding factor.”

Rebecca French Smith, of Columbia, Mo., is a multimedia specialist for the Missouri Farm Bureau, the state’s largest farm organization.

ST. LOUIS (AP) — A federal judge is allowing a lawsuit challenging the constitutionality of Missouri’s execution law to move forward.
U.S. District Judge Beth Phillips has denied a motion from the Missouri Department of Corrections to dismiss a lawsuit filed in October by the American Civil Liberties Union of Missouri. The ACLU lawsuit questions a state statute that prohibits identifying members of the execution team.

At issue is Missouri’s refusal to provide the name of the compounding pharmacy that makes pentobarbital for executions. The state considers the pharmacy to be part of the execution team and won’t say who makes the drug.

The ACLU claims the secrecy is “an effort to avoid public scrutiny.”
Nanci Gonder, a spokeswoman for Missouri Attorney General Chris Koster, declined comment.