Economy

Missouri brick and mortar stores happy with U.S. Supreme Court decision

June 22, 2018 By Missourinet Contributor

If you shop online, you may notice something extra when you check out. The United States Supreme Court made the decision for states to be able to charge online sales tax in a 5 to 4 ruling Thursday.

U.S. Supreme Court (courtesy; Wikimedia commons)

Business owners are happy with the decision, saying it’s long overdue.

“I’m surprised this decision wouldn’t have been made a decade ago, I mean to me it’s a no-brainer,” says Joseph Gidman, co-owner of Tea and Spice Market in southwest Missouri’s Springfield.

Gidman is reacting to online retailers that have been dodging sales tax for years.

“It has been a very unfair advantage that the online community gets these breaks and so many people have gone to online then the responsibility to collect sales tax and fuel the local government has been put on the brick and mortars that are already hurting. It’s nice to have the playing field leveled,” says Gidman.

The ruling overturned a 1992 Supreme Court precedent that had barred states from requiring online businesses with no physical presence in that state to collect sales tax.

Although it’s still unclear exactly what the decision means for our local economy, Greene County Commissioner, Harold Bengsch says it could have a positive impact here in Missouri.

“We think it is a good thing because these are tax monies that were escaping from Missouri that should have been received by Missouri and that now has been addressed by the Supreme Court so in that regard, I think it’s a good thing,” says Bengsch.

Tea and Spice Market’s Gidman thinks consumers will benefit from a more level playing field.

“A lot of people may go online to order teas and spices just because it’s cheaper, but if they realize there’s not going to be a cost difference then they can come out and actually smell the spices and taste the teas,” says Gidman.

According to U.S. Supreme Court Justice Antonin Kennedy, last year e-commerce retail sales alone were estimated at $450 billion.

Missourinet media partner KOLR-TV contributed this story

UM System President emphasizes jobs, research and health care with governor (AUDIO)

June 22, 2018 By Brian Hauswirth

The UM System President says Governor Mike Parson (R) is committed to Missouri and to public higher education.

UM System President Dr. Mun Choi

System President Dr. Mun Choi accompanied Parson during the governor’s recent tour of the University of Missouri-Columbia.

Choi says he and his team had a great conversation with the governor about the value the System can provide for economic development and workforce infrastructure.

“But most importantly, how we leverage the educational research into opportunities to create new businesses right here in Columbia in areas in which we can save lives,” Dr. Choi says.

He’s referring to areas like cancer and cardiovascular disease.

President Choi has said that the UM System is working to train more doctors, dentists, engineers and pharmacists in the state.

Dr. Choi says Governor Parson reached out to his office, before last week’s tour at Mizzou.

“Which goes to show that he sees the value of our university, but we have to be now accountable, we can’t take that for granted,” says Choi. “We have to really deliver on our promises of creating excellence in everything that we do.”

Dr. Choi told the governor that the UM System and its four campuses have a $5.4 billion impact on the state, and that 61,000 people have jobs either directly or indirectly because of the university system.

Governor Parson says businesses must be involved in partnerships with colleges and universities.

Click here to listen to the full interview between Missourinet’s Brian Hauswirth and UM System President Dr. Mun Choi, which was recorded at the University of Missouri-Columbia campus on June 13, 2018:

Southeast Missouri nail company gets hammered by Trump’s tariffs

June 22, 2018 By Alisa Nelson

President Trump’s tariff on steel imports that took effect June 1 has caused a southeast Missouri nail manufacturer to lose about 50% of its business in two weeks. Mid Continent Nail Corporation in Poplar Bluff – the remaining major nail producer in the country – has had to take drastic measures to make ends meet. The company employing 500 people earlier this month has laid off 60 temporary workers. It could slash 200 more jobs by the end of July and be out of business around Labor Day.

Photo courtesy of Mid Continent Nail Corp.

During a Finance Committee hearing this week on Capitol Hill, U.S. Senator Claire McCaskill, D-Missouri, sounded the alarm about the company going downhill and fast.

Mid Continent is one of the largest employers in Butler County and the second largest manufacturer in Poplar Bluff. If push comes to shove, slicing the remaining 440 jobs that pay an average of $12.50 an hour would add to the Bootheel’s struggling reputation marked by several of the poorest counties in the state.

Mid Continent is owned by Mexico-based Deacero. The parent company produces steel and ships the material to its Poplar Bluff plant. Spokesperson Elizabeth Heaton tells Missourinet Deacero is being hit with the 25% tariff for importing steel to its own company.

The manufacturer’s existence in Missouri is riding on whether the federal government will grant a tariff exemption on the steel wire it gets from Mexico. The U.S. Commerce Department is holding the fate of several American companies in its hands. The agency is dealing with a backlog from its more than 20,000 exemption requests.

“Something would have to happen very fast, within days in order for us to know that things were going to improve. We’re hoping that this could get pushed through very quickly,” Heaton says.

The company has also requested a meeting with U.S. Commerce Secretary Wilbur Ross, Heaton says.

“There are only about 15 of these companies left and Mid Continent produces about 50% of the nails out of those 15. If you could imagine, if it were to go out of business and that is of course worse case scenario, we want to do everything that we can to make sure that does not happen, that would be a huge blow to that segment of the industry. It’s a big deal, not just for Missouri and for the economy there, but for the whole industry.”

Heaton says the company is currently focused on trying to keep the Missouri plant open and does not believe there have been discussions on whether to move the Poplar Bluff operation to Mexico.

Trump tariffs blamed for potential closure of major southeast Missouri employer

June 20, 2018 By Alisa Nelson

The last major U.S. nail manufacturer – located in southeast Missouri – could be out of business by Labor Day. George Skarich of Mid Continent Nail Corporation in Poplar Bluff says President Trump’s 25% tariff on steel imports is pricing the company out of the market. If it closes, about 500 workers would be in the unemployment line in a region already suffering from serious economic hardships.

Sen. Claire McCaskill, D-Missouri

“Cheap nail imports from China and other countries don’t face this tariff and are increasing every day. We need our wire to be excluded from this tariff or we will have to increase the layoffs we’ve already begun,” Skarich says.

Mid Continent Nail Corporation is one of the largest employers in Butler County and the second largest one in Poplar Bluff. It launched in 1987 under the direction of David Libla and Republican State Senator Doug Libla of Poplar Bluff.

In a live Missourinet interview last week, Libla indicated he was working on the tariff issue but he did not provide specifics.

During a U.S. Senate Finance committee hearing today in Washington, U.S. Senator Claire McCaskill, D-Missouri, says the manufacturer has already endured severe losses.

“The company has 500 workers in a town of only 17,000. They’ve now laid off 60 of their 500 employees,” she says. “They’ve idled their most sophisticated production facility in Poplar Bluff. They are expected to cut 200 more jobs by the end of July and the company that has visited with us at length believes they’ll be out of business by Labor Day.”

A closure would be a drastic shift from the company’s 2015 expansion that included the addition of a new line, the hiring of nearly 100 workers and a $5 million investment.

According to McCaskill, the manufacturer produces about 50% of the nails made in America.

“So far, in response to the tariff, they have lost almost half of their business in one month due to price,” McCaskill says. “They went from an average of 9,000 tons of nails sold every month. In June, that dropped to 5,500 (tons). In July, the company will sell fewer than 4,000 tons. The customers can easily source nails manufactured in other countries.”

Some U.S. companies, including Mid Continent Nail Corporation, are seeking tariff exemptions from the federal government if they can’t get the goods they need from a domestic metals supplier. The U.S. Commerce Department is experiencing a huge backlog of exemption requests – leaving many of the companies in a major predicament.

During today’s hearing, U.S. Commerce Secretary Wilbur Ross says the department has so far received more than 20,000 requests for product exemptions. Of those, 98 requests have been processed, 42 exemptions have been approved and 56 have been denied. McCaskill railed against the department’s red tape.

“In a chaotic and frankly incompetent manner, you’re picking winners and losers on a very technical basis, according to all the reporting we have, without a great deal of training,” McCaskill says. “The regulatory burden is so extreme on small businesses. Many of these companies are filing dozens of waivers based on having to file a different one for every slightly different product. You are requiring that these waivers be filed every year.”

Ross says the Commerce Department is working through the backlog of exemption requests and disputes claims that the process is chaotic.

Mid Continent Nail Corporation is seeking 24 exemptions but McCaskill says they likely wouldn’t be granted in time to save the business.

Missouri Senator Blunt praises federal tax cut; hears concerns about labor shortage

June 18, 2018 By Brian Hauswirth

Missouri’s junior senator says the tax bill signed by President Donald Trump (R) in December is the most pro-growth tax bill ever passed by Congress.

Senator Roy Blunt addresses the Missouri House on April 4, 2018 (file photo courtesy of Tim Bommel at House Communications)

During a recent roundtable discussion in Jefferson City, mid-Missouri business leaders said the tax cut has helped their companies. But they also told U.S. Sen. Roy Blunt (R) that they are facing labor shortages.

“You know I think in the middle of the country it is particularly a problem right now, but we’re very close all over the country where there are more jobs available than the total number of people on the unemployment rolls. That’s never happened before,” Blunt says.

Missouri Retailers Association President David Overfelt says there’s currently a shortage of truck drivers, and another businessman told Senator Blunt there’s not enough workers in mid-Missouri for collision companies.

Blunt says the United States is in a “dynamic moment” in our economy.

Blunt, who serves on the Senate Commerce, Science and Transportation Committee, says the “Tax Cuts and Jobs Act of 2017” has allowed numerous Missouri companies to reinvest in their workforce with bonuses and higher wages.

Senator Blunt tells Missourinet people have “a lot of confidence.”

“We doubled the child tax credit for a family of four that makes $75,000,” says Blunt. “That’s $2,000 more a year of their money that they get to spend.”

While he voted for the bill, U.S. Sen. Claire McCaskill (D) was one of 48 senators who voted against it.

McCaskill told reporters in Jefferson City in late March that “the pharmaceutical industry took a $50 billion windfall from that bill, gave it to their shareholders and didn’t lower the price of prescription drugs a penny.”

Senator McCaskill says 83 percent of the money will go to one percent of the country, under the bill.

She also says gains by working families will be offset by higher prescription drug prices.

Missouri’s Parson: “We cannot keep kicking that can down the road”

June 14, 2018 By Brian Hauswirth

COLUMBIA, Mo.- Missouri’s new governor said Wednesday in Columbia that infrastructure must be a top priority.

Missouri Governor Mike Parson shakes hands with state senators on June 11, 2018, before he addressed a joint session of the Legislature (photo courtesy of Tim Bommel at House Communications)

Governor Mike Parson (R) briefed reporters at the University of Missouri-Columbia’s campus.

“We cannot keep kicking that can down the road,” Parson said. “We’re going to have to face the fact that we gotta do something. At the end of the day it’s probably going to cost something.”

Missourians will cast ballots in November on a ten cent gasoline tax increase, which would be phased in over four years at 2.5 cents annually.

House Transportation Committee Chairman Bill Reiboldt, R-Neosho, says he hopes Missourians see the need to fund both public safety and roads, with the November ballot issue.

Reiboldt describes the ballot measure as a public safety tax, which would fund the Missouri State Highway Patrol and the road and bridge fund.

“We need to have the people of Missouri where we can present to them what we feel like is the best avenues for the state of Missouri, and let the voters decide at the end of the day whether they want that or not,” said Parson.

Missouri’s current gasoline tax is 17 cents per gallon, which hasn’t been increased since 1996.

U.S. Rep. Ann Wagner, R-Ballwin, tells Missourinet that Governor Parson discussed infrastructure and transportation during Monday’s meeting with the state’s congressional delegation in Jefferson City.

Meantime, the Missouri Housing Development Commission is expected to meet soon to discuss low-income housing tax credits.

New Governor Parson, who supports the tax credits, said changes are needed.

“For low-income housing, and I’ve always been supportive of the low-income housing, that’s not been a secret. But there does need to be reform. We need to do real reform in that,” Parson said.

Missouri Governor Mike Parson wears special goggles as he tours a research facility at Mizzou in Columbia on June 13, 2018 (Brian Hauswirth photo)

The Missouri Housing Development Commission, which was established in 1969, administers and provides financing for construction of affordable housing.

During a brief press conference at Mizzou’s Gwynn Hall, a reporter also asked Parson if he’ll use the state airplane.

“We’ll be using the state plane when we feel like it’s appropriate to use it. We’ll drive when we can, but yeah I think right now there’s nothing more important than traveling the state trying to find out what are the issues facing all the communities and all of the people of Missouri,” said Parson.

Governor Parson also said businesses must be involved in partnerships with colleges and universities. Parson toured Mizzou Wednesday morning with UM System President Dr. Mun Choi, Mizzou leaders, state lawmakers and reporters.

Parson also traveled to southeast Missouri’s Gordonville and Sikeston on Wednesday, and ended the day at Cortex in St. Louis.

Wagner, Cleaver say they look forward to working with Missouri Governor Parson (AUDIO)

June 13, 2018 By Brian Hauswirth

Republican and Democratic members of Missouri’s congressional delegation say this week’s meeting with new Governor Mike Parson (R) in Jefferson City was productive.

Missouri Congresswoman Ann Wagner (R-Ballwin)

U.S. Rep. Ann Wagner, R-Ballwin, says it was a “terrific” meeting.

“We talked about infrastructure and transportation needs, we talked about workforce needs of the state of Missouri,” Wagner says.

Wagner, who’s a Senior Deputy Whip on Capitol Hill, says Missouri’s $88 billion agricultural industry was also discussed at the meeting.

“We talked about trade and agriculture and how we in Washington D.C. can do whatever we possibly can to be supportive of his (Governor Parson’s) agenda,” says Wagner.

The state Department of Agriculture (MDA) released a 2017 report, which says agriculture, forestry and related industries in Missouri produced about 378,000 jobs.

Wagner is also praising the governor’s address to a joint session of the Legislature on Monday.

“And I think that the humility and the servant’s heart of this governor came through today in his remarks, and that he is clearly going to put the people of Missouri first,” Wagner says.

Missouri Governor Mike Parson shakes hands with state senators on June 11, 2018, before he addressed a joint session of the Legislature (photo courtesy of Tim Bommel at House Communications)

Parson emphasized unity and service, during his address.

Governor Parson, who was sworn-in on June 1, met with Missouri’s congressional delegation on Monday morning.

U.S. Rep. Emanuel Cleaver, D-Kansas City, has issued a statement to Missourinet, regarding the meeting.

“Governor Parson wants to work with the delegation to make Missouri better. Infrastructure and workforce development are two priorities for the Governor. I appreciate the time spent with him this (Monday) morning and look forward to working together with him,” Cleaver says.

U.S. Sens. Claire McCaskill (D), and Roy Blunt (R) also participated in the meeting, along with U.S. Reps. Wagner, Cleaver, Billy Long, R-Springfield, Blaine Luetkemeyer, R-St. Elizabeth, Vicky Hartzler, R-Harrisonville, and Jason Smith, R-Salem.

U.S. Rep. William “Lacy” Clay, D-St. Louis, was unable to attend Monday’s meeting, because of his previously scheduled career fair for constituents.

Clay’s spokesman tells Missourinet that Congressman Clay and the governor “had a very positive phone conversation last week.”

New Governor Mike Parson met with Missouri’s congressional delegation on June 11, 2018 (photo courtesy of the Governor’s office)

As for Wagner, she is seeking her fourth term in Washington, and faces an August primary challenge from Noga Sachs.

Five Democrats are running against Wagner: Mark Osmack, Bill Haas, Cort VanOstran, John Messmer and Robert Hazel.

Old Monroe Libertarian Larry Kirk is also running, along with St. Louis Green Party candidate David Arnold.

Click here to listen to the full interview between Missourinet’s Brian Hauswirth and U.S. Rep. Ann Wagner. The interview aired during our live one-hour special on June 11, 2018, at the Statehouse in Jefferson City:

Eastern Missouri official aims to help ex-offenders get county jobs

June 12, 2018 By Missourinet Contributor

St. Louis County Executive Steve Stenger says a parolee’s failure to find employment is a public safety issue. The eastern Missouri county is joining a national campaign to help job seekers who have a criminal record.

Steve Stenger

On Monday, Stenger joined other community leaders at the Urban League in north St. Louis County, where he signed an executive order to “Ban the Box” for county employment. The order to “Ban the Box” on County job applications means it will delay questions related to an individual’s criminal history until later in the hiring process.

“Banning the Box in St. Louis County government is critical for two reasons,” Stenger said. “First of all, it aligns with my priority to help all County residents – regardless of their circumstances – to reach their full potential. Second, it makes sense from a practical standpoint as full-time employment is proven to promote rehabilitation while reducing recidivism rates.”

A 2015 study by the George Warren Brown School of Social Work at Washington University showed that 72% of former prisoners who fail to find full-time work return to prison after two years.

When Stenger was asked if he would feel comfortable hiring someone with a criminal background, Stenger said that’s a hypothetical question with a lot of variables.

“I will say this, I don’t think that their criminal background should exclude from a fair interview process,” he said.

In 2014, the city of St. Louis implemented a “Ban the Box” order for city government jobs. Then in 2016, then-Governor Jay Nixon, D, signed a “Ban the Box” executive order for state jobs.

By Missourinet contributing reporter Jill Enders

Missouri’s Parson: “The welfare of the people will be my guiding principle and sole consideration”

June 12, 2018 By Brian Hauswirth

Missouri Governor Mike Parson (R) emphasized unity and service Monday evening, during his address to a joint session of the Legislature in Jefferson City.

Missouri Governor Mike Parson addresses a joint session of the Legislature on June 11, 2018. House Speaker Todd Richardson (left) and Senate President Pro Tem Ron Richard listen (photo courtesy of Tim Bommel at House Communications)

The Bolivar Republican tells lawmakers this is a difficult time for Missouri.

“During this time, we have witnessed politics at its worst and at its best,” Parson says. “We have been divided, and we have been united.”

Parson says this is a time for a fresh start and for lawmakers to recommit to working together for a better Missouri.

Governor Parson, who was sworn-in on June 1, told lawmakers they must be careful “not to erode the public’s trust in our system of government for short-term personal gain.”

“Most of all, we must always remember that we serve the people and the state of Missouri, not the other way around,” says Parson.

That line from the governor drew a bipartisan standing ovation, and State Rep. Crystal Quade, D-Springfield, was the first lawmaker to stand up and applaud.

Parson is pledging to “spend every day” working to make Missouri stronger and more prosperous.

“And I will never forget, I will never forget that public service is first and foremost is about serving Missourians,” Parson says.

Parson tells lawmakers that the welfare of the people will be his “guiding principle and sole consideration.”

The Missouri Highway Patrol Honor Guard presents the flags at the start of the joint session on June 11, 2018 (photo courtesy of Tim Bommel at House Communications)

The governor received several bipartisan standing ovations, during his 12-minute address.

Parson’s emphasis on unity is drawing praise from a vocal Democratic state lawmaker. State Rep. Greg Razer, D-Kansas City, appeared live Monday on Missourinet, after the governor’s speech.

“The main takeaway that I had anyway was the governor’s mention of making sure that the people’s faith in the institutions don’t erode. And I was very happy to hear him say that,” Razer says.

You can listen to Governor Parson’s full speech here.

Governor and First Lady Teresa Parson greeted guests after the speech, in the Governor’s office. The line appeared to be a few hundred people. Others attended a reception in the Capitol’s third floor rotunda.

Parson begins a “statewide listening tour” Tuesday, with five stops. He’ll travel to Springfield, Branson, Carthage, St. Joseph and Kansas City today.

Parson will begin his day Tuesday morning at 8 at the Springfield Area Chamber of Commerce, and will end with a 7 pm stop at the Greater Kansas City Chamber of Commerce.

Senator Blunt and Missouri Senate Majority Leader react to Governor Greitens’ resignation (AUDIO)

May 30, 2018 By Brian Hauswirth

Missouri Senator Roy Blunt (R) says he’s looking forward to Mike Parson’s leadership as governor.

Missouri Senator Roy Blunt prepares for a business roundtable in Jefferson City on May 29, 2018. Senate Majority Leader Mike Kehoe, drinking water, is seated next to him (Brian Hauswirth photo)

Blunt was hosting a roundtable with business leaders on Tuesday at Associated Industries of Missouri (AIM) in Jefferson City, as Governor Eric Greitens announced his resignation, effective Friday.

The AIM office is just a few miles from the State Capitol.

Blunt gave his first interview to Missourinet, after Greitens made his announcement.

“Well I think the governor has made the right decision for his family and for the state,” Blunt says. “I look forward to Governor Parson’s leadership and certainly will do everything I can to be as helpful to him as I can be.”

Missouri’s junior senator says Greitens’ situation was distracting.

“I think in terms of the state and all the opportunities we have to move forward, the governor also probably realized that his situation was a huge distraction to what he would want to see happen for our state,” says Blunt.

Blunt, who was in Jefferson City for a roundtable discussion about tax cuts and labor shortages, says he’s know Parson for a long time.

Parson is from Bolivar, which is in Blunt’s former U.S. House district in southwest Missouri.

Missouri Senate Majority Floor Leader Mike Kehoe, R-Jefferson City, joined Blunt at Tuesday’s AIM roundtable.

Kehoe says he’s “shocked” by Greitens’ decision to resign. Kehoe also spoke to Missourinet, minutes after the governor made his announcement.

“It sounds like the governor made a decision that he believes is the right thing for his family, and the right thing for the state of Missouri,” Kehoe says. “And I look forward to doing whatever I can to help in that transition and help Lieutenant Governor Parson in any way he’s needed.”

Kehoe echoes Blunt’s comments about the situation being a distraction.

“I am shocked I would say, it’s been a long conversation that we’ve been having about what may or may not happen with the governor,” says Kehoe. “And I know it’s been a distraction for him and his family and for the legislative process and Missourians.”

Kehoe says that “for all practical purposes, Missouri has been without a governor for the last five months.” He says Senate President Pro Tem Ron Richard, R-Joplin, and House Speaker Todd Richardson, R-Poplar Bluff, have been leading the state since January.

Kehoe tells Missourinet he does not know when Parson will receive the oath of office.

Click here to listen to Missourinet news director Brian Hauswirth’s interview with Missouri Senator Roy Blunt (R), which was recorded on May 29, 2018 in Jefferson City, just minutes after Governor Greitens’ announcement: