Business incentives

Posted 11/7/19

T here was good news from the Missouri Department of Economic Development last week. Kansas City has landed a company that is moving its headquarters to Kansas City, that is expected to create 300 …

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Business incentives

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There was good news from the Missouri Department of Economic Development last week. Kansas City has landed a company that is moving its headquarters to Kansas City, that is expected to create 300 new jobs in the state.California-based Auto-Alert plans to move to Missouri. It is an automotive data analysis company. The state said the company selected Kansas City because of its growing downtown area, access to tech talent and available transportation.What caught our attention was that the company will get as much as $9.2 million in tax incentives if it comes through on pledges to create 300 jobs.During his campaign, Gov. Eric Greitens in a speech here talked about “governments at all levels being broken,” corruption in Jefferson City and that there was no “accountability” when tax incentives are given. We tried to remind him of a Washington industry that didn’t meet job quotas and had to pay taxes. That was accountability.Gov. Greitens indicated he was going to put an end to tax incentives in economic development.If you want to be involved in economic development, more specifically to bring more jobs to a state, incentives are necessary. The reason is, a company can obtain incentives from another state. Obtaining new jobs by gaining industry from another state, or to keep companies that want to expand here, usually incentives are necessary from a city, county or state or a combination thereof.That’s the economic playing field today whether or not we like it.Washington for years has been successful in obtaining new jobs by new or expanding industries because of incentives. There has been accountability. The state has been very cooperative by giving incentives.Our new governor is learning the economic development game rather quickly. Demanding “accountability” in creating new jobs is nothing new. It’s been around as long as we can remember.


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