Missouri legislators will begin a special session Sept. 6 centered on the governor’s proposed Made in Missouri Jobs Package.
At the heart of the proposal are tax incentives for exporters who utilize the St. Louis airport and for companies that focus on high-tech industries. The package, details of which will be fine-tuned by lawmakers, also aims to minimize credits thought to be less effective.
George Connor, director of the political science department at Missouri State University, said the jobs package appears to have widespread support.
“Since July, I think the Republicans have come to a greater degree of consensus, and their idea of an economic or jobs-creation package is much closer to what Gov. Nixon was envisioning himself,” Connor said.
The key pillars of the Made in Missouri Jobs Package include:
- The Missouri Science and Innovation Reinvestment Act, which would work to support next-generation scientific and technology industries by capturing a portion of sales tax growth and reinvesting that money into those industry sectors through the creation of the Missouri Technology Corp.;
- Compete Missouri, which is designed to facilitate job creation and capital investment in the state by providing financial assistance for job training for new jobs created by qualified companies and supporting colleges that train students in industries expected to grow;
- “Aerotropolis,” which would set aside $60 million in incentives for freight forwarders, which manage import and export shipments, and would send $300 million in incentives to refurbish and build warehouse space near Lambert-St. Louis International Airport; and
- Tax credit reform, which would eliminate existing credits such as those for housing developers and provide funds to pay for new incentives for companies that operate computerized data centers or focus on high-tech industries.
The big mystery, Connor said, is whether incentive plans for Aerotropolis – a term used to describe a city centered around international air trade – actually would make Lambert International a hub for exports heading to China and create jobs.
“Is it going to create jobs for citizens in Missouri? Is it going to generate revenue for the state of Missouri? Is it going to provide an economic boost? It’s really an unknown,” Connor said.
One study by the St. Louis Regional Chamber and Growth Association indicates the foreign trade incentives could create more than 18,000 construction jobs and nearly 11,000 permanent jobs in Missouri. Not everyone is convinced.
Rep. Eric Burlison, R-Springfield, said while he supports a reduction in taxes across the board, he suspects this package is promoting incentives that are too narrowly targeted.
“It’s not sexy, as an elected official, to make taxes simple and lower for everyone. What is sexy is to create a targeted tax credit that benefits one particular company or one particular interest group, because then you have somewhere to go to cut a ribbon,” Burlison said.
Burlison said he agreed with the skepticism expressed by free-market think tank Show-Me Institute – which has publicly opposed credits for the Aerotropolis project – about the effectiveness of incentives for warehouse builders near Lambert International.
Burlison said tax credits could be beneficial if they are broad in nature or redirect money the government is already spending.
Burlison has thrown his support at one measure in the package’s tax credit reform – giving convention and visitors’ bureaus in the state a portion of the sales tax collected from a nonprofit amateur sporting tournament to cover the event’s expenses, such as the payroll for referees.
While Burlison believes this is an example of a responsible credit, he may still vote against the total package, if he feels other incentives are too specific.
Burlison said the jobs package should be up for a vote Sept. 14.
During a conference call with reporters hosted by the Missouri Chamber of Commerce and Industry, Springfield Area Chamber of Commerce President Jim Anderson said southwest Missouri would benefit from the proposal.
“This jobs package is absolutely crucial to the long-term needs of our economy,” Anderson said, touting the Compete Missouri portion of the proposal, which he affectionately termed “Complete Missouri.”
Anderson added that he was pleased to see the jobs package receive support from both sides of the aisle in Jefferson City during the summer. “It truly is, I think, a carpe diem opportunity for the leadership of our state..”
Connor said he believes both Republicans and Democrats want to show that they are working to improve the state’s economy, and this jobs package appears to be the best way to do that.
“There’s a big incentive to do something to try and stabilize and restore the Missouri economy. That’s why I’m pretty sure something will pass,” Connor said. “While there may be amendments introduced, I don’t think they’ll be substantive.”[[In-content Ad]]
