@BlogKCFirst. The Business Journal reports that JP Morgan is moving 800 jobs from south KC to Overland Park, thanks to $15 million in tax credits from the State of Kansas (Yay for OneKC!). This despite the fact that such tax breaks are bankrupting Kansas instead of producing revenue, and contributing to teacher layoffs and other cuts. The company rejected the City’s offer for space in the Town Pavilion building, despite the huge investment made to make Downtown more attractive to businesses.
Second: Today Joe Miller at KC Downtowner has news of a big shakeup at the City’s Economic Development Corporation. The EDC is the quasi-city agency charged the keeping those 800 JP Morgan jobs in the City, as well as keeping the Wizards from moving to KCK. The EDC is actually considering focusing on small businesses and startups instead of chasing giant corporations!
Third: Joe Miller at KC Downtowner also exposes the conflicts of interest of Kevin Collison, the Star’s business columnist. Apparently Kevin drinks with the developers on Fridays and then wakes up on Mondays and writes columns championing big tax breaks for his drinking buddies – tax breaks that don’t seem to be helping the City all that much.
Welfare is when somebody gets something for nothing. Kansas is getting something out of this deal.
Tax breaks bring in jobs, jobs pay salaries, salaries are subject to income taxes. Income generates spending which generates sales tax revenue. Corps barely pay income taxes as it is, so your argument about bankruptcy is bankrupt. States generate nearly all of their revenue from personal income, sales and property taxes. Kansas should be doing whatever it takes to bring in jobs, industry and higher wages for its residents. Bring them in and broaden the tax base. Take a look at what’s happening in Louisiana: lower corp taxes, incentives, etc. Now, it’s one of the best places in the US to start a business.
Figure each of those 800 people makes 40k. That could be nearly 32 mil in taxable income EVERY YEAR (obviously not accounting for deductions here) + increases in sales and property taxes revenue. Unless, of course everyone commutes in from MO to avoid your higher sales and property taxes. Say, somebody like me. I live in KCMO and both states ought to be doing more to lure in ALL business…big and small.
Maybe Joe Miller should write an article about being a back-stabbing weasel. Now that is a story.
you’re missing the point. you need to lure from somewhere other than across the state line. you’re cannablizing each other in your race to the bottom.
You are both missing the point. Big corporate relocations of a thousand employees are a thing of the past. We need to be encouraging new companies and growing the ones we have.
“…Big corporate relocations of a thousand employees are a thing of the past….” wait, what were we talking about? Geez!
What ever happened to broadening the tax base by taxing huge corporate profits?