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Friends:
Time is passing quickly! March 16th is the last day for committees to meet. Next week will see a flurry of activities in the committee setting, with many bills advancing to the full Senate.
Republicans in the Senate proposed a jobs package this week that is designed to bring more manufacturing and bioscience jobs to Kansas. Earlier this year a group of citizens and business leaders from across the state provided the Legislature with ideas on tax reform and job growth as part of a tax working group. They told us that Kansas should focus on its strengths like South Dakota has done with attracting financial services jobs and Iowa has done by growing its insurance industry. The Senate plan - called the "Kansas Works" Jobs Plan - will give employers the tools they need to bring not just jobs, but good-paying jobs, to our state. The plan has two components:
- A manufacturing component that would offer employers the flexibility to use what is known as single-factor apportionment. This is a powerful incentive for manufacturers to build their facilities and hire their workforce in Kansas while shipping products to a global market. We know that businesses face increasing competition from countries like China and Mexico. By growing manufacturing jobs and exporting more products to other states and other countries, capital flow into Kansas will increase.
- A biosciences component that would allow bioscience and pharmaceutical companies relocating to Kansas to pay no income tax. The proposal builds on the Kansas Bioscience Authority's investment in research & development and start-up companies by providing incentives to already-profitable bioscience businesses. This provision includes a 5-year sunset so that the result of the incentive can be evaluated. With Kansas already a leader in the biosciences, this is an opportunity for Kansas to get a head-start on this emerging industry and the skilled jobs that come with it.
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