And I've been trying to figure out a bad thing about this... I must be missing it..
The automaker incentives will let manufacturers keep employee withholding taxes they normally would pay Missouri if they improve their factories for new or expanded product lines. It's targeted primarily at Ford's Claycomo plant, which employs about 3,700 people to make pickup trucks and sport utility vehicles.Tax incentives = Ford stays in Missouri , in particular Kansas City.. but trust the media to try to spin it as a bad thing... and not just a bad thing, but EVIL and mean to government employees.
But the attempt to save Ford's private-sector jobs will be financed from the paychecks of new public-sector employees. That's because the automotive legislation is linked to a separate bill passed Wednesday requiring new state employees to start paying into their pension funds.
Over 10 years, the automaker incentives could cost Missouri $150 million. The pension changes could save a projected $659 million over the next decade for three of Missouri's main retirement systems. It would require state employees hired after January 2011 to contribute 4 percent of their paychecks toward the pension fund, delay their standard retirement age and require them to work longer to gain eligibility for a pension.
So wait a minute.. the state loses $150M but makes $659M in the process... and employees have to put toward their own retirement accounts? Well, gosh, golly.. WELCOME TO THE REAL WORLD government pukes!
It's been a messy bill, they even removed one opposing republican from his chairman seat for not backing the bill, but I'm stuck trying to figure out why Rep. Pergason was so opposed to the bill altogether. While I agree with him that "broad-based tax cuts, a repeal of Missouri's income tax and a "right to work" law for employees would do more for Missouri's economy than tax breaks targeted for specific big businesses.", you're not going to convince the Missouri fat cats to do those three (espeically with the SEIU pulling the strings, among others), so you have to take what you can get.
It's not the greatest solution, but it's a start...
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