These 36 Missouri Corps, generated Total Pretax Earnings in 2011 of $18.0 bil, up a very robust 21% over 2010, and up 36% over such amount two years ago in 2009.
Clearly, the Obama Administration has created an economic environment that has permitted these Missouri Corporations to flourish.
Missouri is very fortunate to have as one of its US Senators, Claire McCaskill, who fights as hard for her Missouri companies of all sizes as any US Senator. And likewise for these strong advocates for Missouri companies in the US House: Russ Carnahan, Lacy Clay and Emanuel Cleaver.
You know when there are so many unreasonably belligerent TV attack ads against Claire McCaskill, funded by undisclosed out-of-state Super PACs, that she is doing a great job for Missouri’s 99%, like she did when she fought so hard recently to eliminate Big Oil Tax Subsidies.
I think the only way to ensure that these fine Missouri Corps will be able to generate Total Pretax Earnings growth for the remainder of 2012 of at least 15%, and at the same time, also result in very robust US job creation, is for the US Congress to immediately pass the following economic initiatives, which should be particularly helpful to Missouri’s many manufacturing companies:
- Extend the 100% first-year tax expensing of equipment and computer software investments made in the remainder of 2012. The CBO-scored cost should not be very significant.
- Substantially accelerate first-year tax depreciation on all new building and building remodeling investments made in the remainder of 2012, and rein in its CBO-scored cost, by lowering tax depreciation in years 2 through 10.
- Pass the Research and Experimentation Tax Credit for businesses for all 2012 expenditures, but substantially enhance it, especially for smaller businesses, and simplify it.
- Give small businesses, creating US jobs in 2012, a 10% tax credit.
- Give businesses a 20% income tax credit for the expenses of moving operations from overseas back to the US. And pay for this by removing income tax deductions businesses now get for moving their production from the US to overseas. This one's pretty cool, where the pay-for is also positive to the US job count.
- Permit US taxpayers, who have their mortgage loans financed by either Fannie Mae or Freddie Mac, to have their mortgages refinanced at the current lower prevailing market interest rates.
- Pass the substantial amount of school construction infrastructure fix ups for K-12 Schools and for Community Colleges, which is in the American Jobs Act (AJA). And all of these school investments should occur in 2012, and mostly from now through the end of the summer of 2012.
The above first two will result in explosive US economic stimulation, particularly when viewed in light of future business income tax reform, which should result in a much lower business income tax rate in 2013 and going forward.
Thus, businesses will get both the 100% first-year tax depreciation on equipment purchases and the substantially accelerated first-year tax deprecation on building investments in 2012 at a business income tax rate reduction which is much higher in 2012, and then the future earnings from these equipment and building investments will generate post 2012 earnings streams from these investments which are taxed at a much lower post tax reform business income tax rate. Wow, now that is bold economic stimulation.
This above bold economic stimulation effectively works like a back-door, stealth investment tax credit in 2012, due to the expected future reduction in business income tax rates starting in 2013 under any reasonable business tax reform.
The investment tax credit was used first by President Jack Kennedy in the early 1960s to get the US out of a deep recession. And President Lyndon Johnson also used it after he took over. The end result was US real GDP growth which averaged 4.85% from 1960 to 1968. And the US unemployment rate dropped substantially while this investment tax credit was in effect during the 1960s.
This kind of very robust US real GDP growth, markedly north of 4%, and for an extended period of time, is precisely what the US economy now needs. And this very strong GDP growth is by far the best way to substantially reduce the massive US Deficit.
But these explosive economic benefits to US businesses from this accelerated first-year tax depreciation does not necessarily mean that there will be resultant substantial US job creation from it.
Thus, I would make sure that the largest of the US Corps…..say the top 50 or so…..would get these first-year accelerated tax depreciation benefits in 2012 only if they add a sufficient number of US full-time workers in 2012.
And similar economic benefits will result from the Research and Experimentation Expenditures. Not only will businesses get higher Research Tax Credits in 2012 for making investments in 2012, but they will also get 2012 tax deductions from these Research investments made in 2012 at the higher business income tax rate in 2012, and then subsequently get the future earnings stream from these Research investments taxed at the lower post tax reform business income tax rate that will be applicable starting in 2013 and going forward.
Below here is the Missouri headquarters location of each of these 36 Missouri Corporations.
| Missouri Corporation | Missouri HQs |
| Emerson Electric | St Louis |
| Monsanto | St Louis |
| Express Scripts | St Louis |
| Peabody Energy | St Louis |
| Reinsurance Group | Chesterfield |
| O'Reilly Automotive | Springfield |
| H&R Block | Kansas City |
| Sigma Aldrich | St Louis |
| Jones Financial Companies | St Louis |
| Cerner | Kansas City |
| Kansas City Southern | Kansas City |
| Energizer Holdings | St Louis |
| Ralcorp | St Louis |
| Amdocs | Chesterfield |
| Commerce Bancshares | Kansas City |
| Solutia | St Louis |
| DST Systems | Kansas City |
| Arch Coal | St Louis |
| Panera Bread | St Louis |
| Jack Henry | Monett |
| Leggett & Platt | Carthage |
| Olin | Clayton |
| Centene | St Louis |
| UMB Financial | Kansas City |
| Belden | St Louis |
| Stifel Financial | St Louis |
| Graybar Electric | St Louis |
| Charter Communications | St Louis |
| MEMC Electronic Materials | St Peters |
| Patriot Coal | St Louis |
| Late Additions | |
| US Premium Beef | Kansas City |
| Entertainment Properties Trust | Kansas City |
| Inergy LP | Kansas City |
| Novation Companies | Kansas City |
| Furniture Brands Intl | St Louis |
| First Banks | St Louis |
| Obama | |||||
| Bump | |||||
| PTI(L) | PTI(L) | ||||
| 1 Year | 2 Year | ||||
| PTI(L) | PTI(L) | PTI(L) | % | % | |
| 2011 | 2010 | 2009 | Change | Change | |
| mils $s | mils $s | mils $s | |||
| Missouri | |||||
| Emerson Electric | 3,631 | 2,879 | 2,450 | 26% | 48% |
| Monsanto | 2,374 | 1,490 | 2,918 | 59% | -19% |
| Express Scripts | 2,192 | 1,909 | 1,437 | 15% | 53% |
| Peabody Energy | 1,374 | 1,142 | 629 | 20% | 118% |
| Reinsurance Group | 834 | 864 | 592 | -3% | 41% |
| O'Reilly Automotive | 816 | 689 | 497 | 18% | 64% |
| H&R Block | 677 | 784 | 839 | -14% | -19% |
| Sigma Aldrich | 640 | 544 | 490 | 18% | 31% |
| Jones Financial Cos | 482 | 393 | 269 | 23% | 79% |
| Cerner | 470 | 362 | 293 | 30% | 60% |
| Kansas City Southern | 455 | 357 | 102 | 27% | 346% |
| Energizer Holdings | 406 | 543 | 445 | -25% | -9% |
| Ralcorp | 400 | 354 | 350 | 13% | 14% |
| Amdocs | 385 | 366 | 418 | 5% | -8% |
| Commerce Bancshares | 381 | 318 | 242 | 20% | 57% |
| Solutia | 297 | 211 | 121 | 41% | 145% |
| DST Systems | 274 | 356 | 355 | -23% | -23% |
| Arch Coal | 239 | 135 | 25 | 77% | 856% |
| Panera Bread | 220 | 180 | 140 | 22% | 57% |
| Jack Henry | 208 | 181 | 157 | 15% | 32% |
| Leggett & Platt | 206 | 256 | 198 | -20% | 4% |
| Olin | 198 | 77 | 210 | 157% | -6% |
| Centene | 175 | 154 | 138 | 14% | 27% |
| UMB Financial | 146 | 127 | 120 | 15% | 22% |
| Belden | 140 | 99 | 39 | 41% | 259% |
| Stifel Financial | 139 | 0 | 120 | NM | 16% |
| Graybar Electric | 133 | 69 | 63 | 93% | 111% |
| Charter Communications | 73 | 143 | 78 | -49% | -6% |
| MEMC Electronic Materials | (128) | (13) | (47) | -885% | -172% |
| Patriot Coal | (206) | (217) | (179) | 5% | -15% |
| Total all 30 | 17,631 | 14,752 | 13,509 | 20% | 31% |
| Late Additions | |||||
| US Premium Beef LLC | 249 | 239 | 166 | 4% | 50% |
| Entertainment Properties Trust | 127 | 115 | 34 | 10% | 274% |
| Inergy LP | 50 | 59 | 107 | -15% | -53% |
| Novation Companies | 5 | (9) | (182) | 156% | 103% |
| Furniture Brands Intl | (38) | (48) | (137) | 21% | 72% |
| First Banks | (43) | (190) | (299) | 77% | 86% |
| Grand Total all 36 | 17,981 | 14,918 | 13,198 | 21% | 36% |
