Last week, the Missouri House of Representatives approved a $50 million tax incentive package for General Motors as the automaker ponders making a $1 billion investment at its Wentzville Assembly plant.
But the bill is now receiving pushback in the house, with opponents of the proposal filibustering for several hours Monday in order to expire debate time in the state’s chamber.
According to the St. Louis Post Dispatch, Sen. Bill Eigel, R-Weldon Spring and others stalled the house for several hours Monday as he explained his reasoning for not backing the $50 million incentive package, which was first brought forth by Missouri Republican Gov. Mike Parson.
Eigel argued the bill should not go forth as it is not being backed by Sen. Bob Onder, R-Lake Saint Louis, who is in charge of the district that includes the factory and in which many of its workers reside.
Another representative, Sen. Andrew Koenig, R-Manchester, said the $50M tax incentive wsd a “complete waste of Missouri tax dollars.”
Governor Parson’s proposal includes giving GM $5 million in tax breaks per year over a 10 year period if the automaker invests at least $750 million in Wentzville Assembly. The plant currently employs around 3,500 people and builds the Chevrolet Colorado, GMC Canyon, Chevy Express, and GMC Savana.
“We are excited about having the opportunity to sit at the table and be a part of negotiations to bring a huge investment to our state and the people of this state,” Governor Parson said in a statement previously.
GM Wentzville Plant in 2017
It’s not clear what the expansion could be for, however since GM seems open to making the investment in a plant other than Wentzville, it seems as though it is not related to mid-size truck or full-size van production.
Source:Â St. Louis Post Dispatch
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Comments
$5 million a year for 10 years for a minimum of $700 million in investment seems like a no brainer to me. If missouri doesn’t do it, there are plenty of states that will.
Was AOC sitting at the table?
I find it crazy that in a time when the future of the auto industry is more unclear then it has probably ever been. Elected officials are turning their back’s on major investment potential by a manufacturer that employees thousands of workers. That investment if made could lead to more jobs and could potentially secure the continued employment for all of them for decades.
They should see it as essential to the future of those jobs that the facility is up to date and capable of producing tomorrows vehicles.
This is just another example of how government fails.
They can invest in GM here with this tax package and get much more in return from employee taxes, supplier taxes and supporting business taxes vs GM closes this up and moves the line else where.
Odds are the government would just waste the income anyways.
The City of Akron Ohio cut a deal with Goodyear tire. It has saved the east side of town. But they made this kind of deal too late to save many other companies from leaving town.
When there are cheaper places to go company’s will go there unless there is some offer to make there present plant more attractive to keep open.
You just can’t tax everyone into oblivion.
i’d bet most of that investment goes to robots, machines, etc … and not people.
i hope all of those promises are more credible than what wisconsin got from foxconn. foxconn made trump and scott walker look like fools.
And if it does the companies making and installing along maintaining the robots will be paying taxes. Paying for tools, paying labor cost, paying for lodging, paying for houses to live in while they remain at the plant.
Is that a perfect thing no but it is better than nothing from nothing.
No incentives, no plant, no jobs, more unemployment, another decimated St Louis Neighborhood.
Capitalism is not perfect but socialism is the formula of creating victims not opportunities.
welfare for people bad.
welfare for a corporation making billions yet pays no federal income taxes good.
ok got it.
Welfare for people is like giving like just giving someone a meal.
Giving to companies to locate a plant gives people jobs that provide opportunity to provide for their families long term with no dependence on government.
Many in government have taken the temporary help aspect of welfare and run for office politicking welfare as a Career today.
Most large countries today subsides many different industries to keep them competitive with other countries. Those who don’t become irrelevant.
Just look at how much Japan puts into their auto industry.
What is better? To pay people to do nothing or to invest in companies that provide opportunity for work and self sustaining income and careers?
so you agree with china’s policy of supporting key industries? isn’t that what trump has been railing about as being unfair?
welfare for both people and corporations shouldn’t be a way of life. but i have a heck of a lot more sympathy for a poor family than a $50BN corporation making billions when it comes to welfare.
mary barra makes about $20M/year. that $5M/year tax break doesn’t even cover 1/4 her salary.
I do not agree with how most countries do it with direct investments in companies.
But cutting breaks on taxes is fine.
You give money to people to do nothing you get nothing in return. Give it to a company and they provide jobs.
With the number Automakers make the pay she receives is a very small percentage. We are talking a Billion dollar investment and 20 million is so much less here.
Why is there no complaints on Oprah or Howard Stern. They are making much more than Mary but few complain.
Sure many are overpaid but the market determines the price. You pay less you get folks like you and myself that would run the company into the ground.
When billions of dollars are at risk and over 100,000 jobs are on the line you don’t need a novice.
Most of that money would go to the shareholders anyways. If they are ok then that is all that matters.
Many forget or never were around for the Roger E Smith days. Talk about novice.
One last note. Google Earth this plant. Look at the many buildings around the plant that are non GM that are there to support the plant. The bed liner company and the many other suppliers just located on site. That does not count the other businesses and other companies involved that receive direct income from this plant. This is a far reaching deal when a plant lives or dies.
California has decided to take companies into oblivion. Where has that got them with companies leaving in record numbers. Even Seattle wanted to tax Amazon and they showed they could easily leave them hanging at will.
It is give to live and a competitive market be it business or Country/state/city.
Another way to look at it, how much tax revenue (income, business, property taxes etc) would Missouri loose if GM left?
If the average wage in the plant is 60,000 and those 3500 people pay average Missouri income tax for a married person, that alone pays the 50 million in 8 years. Add in the rest and this is a good deal. It’s a tax BREAK not a handout.
States can’t just always say no and think companies won’t leave.
And who the hell cares what Mary Bara makes…..if you’re a shareholder and are mad about then do something otherwise it’s irrelevant.
I say if they bring back Emerald Green Metallic then let em have it. It’s time for automakers to stop with the white, black, silver, gray monopoly plaguing automakers. We need some variety on the road.