Mike Lear of the Missourinet reports on yesterday’s hearing on the Quality Jobs Act: House Committee Looks for Way to Improve Quality Jobs Program. o does David Lieb with the Associated Press:Economist Casts Doubt on Mo. Business Incentives
My short-take: I have sympathy for Prof. Wall’s case that the Quality Jobs Act doesn’t actually add jobs to our state economy. In contrast to proponents who offer (1) anecdotal evidence, (2) make-believe Keynesian REMI models, and (3) charts counting every credit claimed as a “job created as a result of the tax” without regard to whether the tax credit actually caused the job to be created or not, Prof. Wall looked at actual county-by-county data – and found evidence of job growth lacking.
However, I’m no rube. The Quality Jobs Act has powerful bi-partisan defenders. Any effort to simply do away with it would go nowhere fast. And there is a middle ground for reforms to improve the program’s success rate. I’m interested in finding that middle ground. We need more Express Scripts and Monsantos in Missouri – and no more Mamteks. This could mean adding discretion to the program, reducing caps, incentivizing capital investments, providing quicker redemptions with strong clawbacks for those quick redemptions, and/or other options. I’m open to ideas.
