October 21, 2014

Bill would give manufacturers tax breaks for creating jobs (AUDIO)

The legislature is looking at a measure that would offer tax incentives for creating manufacturing jobs. The House Economic Development Committee is considering a bill that would give manufacturing companies tax breaks for creating jobs. Rep. Chuck Gatschenberger (R-Lake St. Louis) says to qualify, companies would have to create at least five jobs with health insurance and pay 100 percent of the county’s wage. The percentage of what they could retain would increase as pay for those jobs also increased.

He says this takes what the legislature did for Ford and GM a few years ago one step farther.

He says what the state loses in tax revenue for letting companies retain five percent, the state benefits in every other sector of the economy, and that can be seen in Wentzville and Claycomo as nearly 3,000 workers live, buy homes, shop and pay taxes in Missouri.

The House Economic Development Committee has taken up the measure. General Motors, St. Louis Community Colleges, and Associated Industries of Missouri testified in favor of the bill. No one spoke out against it.

Manufacturers that created five or more full-time jobs with benefits would be able to retain¬†5 percent of their state taxes. They would have to pay 100 percent of the county’s wages based on numbers¬†compiled by the Bureau of Labor Statistics. Those who paid more than that amount could retain up to 6.5 percent of their taxes.

AUDIO: Jessica Machetta reports (1:15)