Post by TonyV on Jun 20, 2010 6:54:58 GMT -5
Hello, I would like to bring your attention on a new post published on the
UAWLAP.org Site.
Details of the post follow.
In Solidarity,
Steven M. Stone
Missouri General Assembly to convene in special session next week; tax break for
Ford is topic
Posted on Fri, Jun. 18, 2010
General Assembly to convene in special session next week,; tax break for Ford is
topic
By STEVE KRASKE
The Kansas City Star
Missouri Gov. Jay Nixon is ordering lawmakers back to Jefferson City next week
to consider tax incentives for the Ford Motor Co.
Ford is expected to move production of the next version of its Escape/Mercury
Mariner SUV from its Claycomo plant to Kentucky next year.
The carmarker, which also builds the F-150 pickup at Claycomo, would need to
retool the plant to build a different model. The plant employs about 3,900
workers.
“Automobile manufacturers and suppliers employ thousands of Missourians in
every corner of the state,” Nixon said Friday, “and it’s vital that
Missouri remains a hub of automotive production for generations to come.”
Nixon, a Democrat, said he will ask lawmakers convening at noon Thursday to
consider a tax break that would allow Ford to retain withholding taxes that
typically are sent to the state — a break that could be worth up to million a
year.
The General Assembly came close to passing the measure during the legislative
session that ended in May. It easily passed the House and won a preliminary vote
in the Senate before stalling on the session’s final day.
Nixon said Ford is in the midst of finalizing decisions about restructuring
operations and locating production lines.
Other states, most notably Michigan, are aggressively competing for Ford jobs,
he said.
This will be the sixth special session that Missouri governors have called since
2001.
In his message, Nixon also asked lawmakers to consider a way to pay for the
incentive package through cuts in future state pensions. He proposed requiring
new state workers to pay 4 percent of their salary to the state retirement
plan.
“It’s important that we offset the costs of that (Ford) investment to make
sure we have government we can afford,” Nixon said.
The announcement of the special session came just one day after Nixon signed off
on the state’s next budget, cutting about 0 million because of faltering state
revenues.
Those cutbacks came on top of hundreds of millions of dollars in other
reductions that lawmakers made this spring.
But some lawmakers predicted that giving tax breaks to Ford could be a tough
sell.
“At a time when the state is struggling to provide for the welfare of its
citizens, Missouri should not make the welfare of a profitable corporation a
higher priority, especially when there is no guarantee Ford will keep its jobs
in Missouri,” said Rep. Jamilah Nasheed, a St. Louis Democrat.
Rep. Paul LeVota, an Independence Democrat, said he wasn’t convinced that
lawmakers would pass both the Ford package and the pension cuts. The state
Senate has battled over tax breaks in recent years.
One problem, LeVota said, is that Nixon has coupled the tax breaks with the
pension cuts. LeVota, the House minority leader, said he had encouraged Nixon to
propose several options for paying for the tax breaks.
“The biggest risk is that they’re tied together,” LeVota said. “There is
a handful of people who don’t like the idea of taking away incentives for
state workers.”
Still, the convening of a special session was welcome news at the Claycomo
plant, where local economic development and union officials have been concerned
about what vehicle will replace the SUV.
“We’re very pleased that the governor and the legislature will reconsider
this issue,” said Jeff Wright, president of United Auto Workers Local 249.
“This isn’t just good for Ford and the UAW, but for all of the automotive
industry in Missouri.”
The Star’s Randy Heaster contributed to this report. To reach Steve Kraske,
call 816-234-4312 or send e-mail to skraske@kcstar.com.
© 2010 Kansas City Star and wire service sources. All Rights
Reserved. www.kansascity.com
Link to the post:
uawlap.org/ford-motor-co/missouri-general-assembly-to-convene-in-special-session-next-week-tax-break-for-ford-is-topic.php
Link to UAWLAP.org: uawlap.org
UAWLAP.org Site.
Details of the post follow.
In Solidarity,
Steven M. Stone
Missouri General Assembly to convene in special session next week; tax break for
Ford is topic
Posted on Fri, Jun. 18, 2010
General Assembly to convene in special session next week,; tax break for Ford is
topic
By STEVE KRASKE
The Kansas City Star
Missouri Gov. Jay Nixon is ordering lawmakers back to Jefferson City next week
to consider tax incentives for the Ford Motor Co.
Ford is expected to move production of the next version of its Escape/Mercury
Mariner SUV from its Claycomo plant to Kentucky next year.
The carmarker, which also builds the F-150 pickup at Claycomo, would need to
retool the plant to build a different model. The plant employs about 3,900
workers.
“Automobile manufacturers and suppliers employ thousands of Missourians in
every corner of the state,” Nixon said Friday, “and it’s vital that
Missouri remains a hub of automotive production for generations to come.”
Nixon, a Democrat, said he will ask lawmakers convening at noon Thursday to
consider a tax break that would allow Ford to retain withholding taxes that
typically are sent to the state — a break that could be worth up to million a
year.
The General Assembly came close to passing the measure during the legislative
session that ended in May. It easily passed the House and won a preliminary vote
in the Senate before stalling on the session’s final day.
Nixon said Ford is in the midst of finalizing decisions about restructuring
operations and locating production lines.
Other states, most notably Michigan, are aggressively competing for Ford jobs,
he said.
This will be the sixth special session that Missouri governors have called since
2001.
In his message, Nixon also asked lawmakers to consider a way to pay for the
incentive package through cuts in future state pensions. He proposed requiring
new state workers to pay 4 percent of their salary to the state retirement
plan.
“It’s important that we offset the costs of that (Ford) investment to make
sure we have government we can afford,” Nixon said.
The announcement of the special session came just one day after Nixon signed off
on the state’s next budget, cutting about 0 million because of faltering state
revenues.
Those cutbacks came on top of hundreds of millions of dollars in other
reductions that lawmakers made this spring.
But some lawmakers predicted that giving tax breaks to Ford could be a tough
sell.
“At a time when the state is struggling to provide for the welfare of its
citizens, Missouri should not make the welfare of a profitable corporation a
higher priority, especially when there is no guarantee Ford will keep its jobs
in Missouri,” said Rep. Jamilah Nasheed, a St. Louis Democrat.
Rep. Paul LeVota, an Independence Democrat, said he wasn’t convinced that
lawmakers would pass both the Ford package and the pension cuts. The state
Senate has battled over tax breaks in recent years.
One problem, LeVota said, is that Nixon has coupled the tax breaks with the
pension cuts. LeVota, the House minority leader, said he had encouraged Nixon to
propose several options for paying for the tax breaks.
“The biggest risk is that they’re tied together,” LeVota said. “There is
a handful of people who don’t like the idea of taking away incentives for
state workers.”
Still, the convening of a special session was welcome news at the Claycomo
plant, where local economic development and union officials have been concerned
about what vehicle will replace the SUV.
“We’re very pleased that the governor and the legislature will reconsider
this issue,” said Jeff Wright, president of United Auto Workers Local 249.
“This isn’t just good for Ford and the UAW, but for all of the automotive
industry in Missouri.”
The Star’s Randy Heaster contributed to this report. To reach Steve Kraske,
call 816-234-4312 or send e-mail to skraske@kcstar.com.
© 2010 Kansas City Star and wire service sources. All Rights
Reserved. www.kansascity.com
Link to the post:
uawlap.org/ford-motor-co/missouri-general-assembly-to-convene-in-special-session-next-week-tax-break-for-ford-is-topic.php
Link to UAWLAP.org: uawlap.org
