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Published May 24, 2007 10:22 pm - State Rep. Ron Richard, R-Joplin, had high hopes that legislation he sponsored during the recent session would provide Missouri with 7,000 jobs paying more-than-average wages.
In our view: Good use of incentives
State Rep. Ron Richard, R-Joplin, had high hopes that legislation he sponsored during the recent session would provide Missouri with 7,000 jobs paying more-than-average wages.
The deal’s not dead yet. The legislation awaits Gov. Matt Blunt’s signature.
But, the Senate added 18 amendments to the bill, increasing the financial impact by more than $35.5 million to the state.
Blunt has until July 14 to sign the bill, but because of the additions to Richard’s original proposal, the potential cost to the state would be significantly higher. The governor is already anticipating the research on the bill will be longer than normal.
Richard’s updated version of the Missouri Quality Jobs Act applies to small businesses as well as those with more than 1,000 jobs at stake. The new legislation increases the number of businesses that can participate in the program and raises the tax incentives allowed in a calendar year from $12 million to $50 million for Missouri.
The legislation could mean benefits for Southwest Missouri employers and employees.
Without the additional funding, local leaders say, Missouri can’t run with the big dogs — namely other states that offer more incentives to employers. Meanwhile, folks looking to make a decent wage are looking or moving elsewhere. According to the U.S. Department of Labor, of the 77,760 jobs in the Joplin metropolitan area, more than 50,000 of them paid less than $10 an hour in 2005.
Richard is on the right track. Instead of providing tax incentives to bring in companies that are going to keep wages low, let’s look at trying to improve quality of life. Richard has told us that of the 7,000 jobs statewide that hinge on the governor’s signature, most would pay between $40,000 and $100,000 a year.
We don’t want to encourage the signing of a bill that now appears to have some expensive amendments tacked onto it by the Senate.
But we do applaud Richard for trying. If his attempt to do the right thing for the workers of Missouri doesn’t get signed, we hope to see it come around again next year.
Ultimately, low wages will cost us far more than the tax incentives.
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