Hulshof Plan to Encourage Immediate Job Creation
Businesses would receive money to create jobs now
Kenny Hulshof has offered several ways to enhance Missouri's job climate over the long-term. The challenge has been finding a solution that would result in the immediate creation of jobs. No candidate has been able to put forth a near-term solution - until now.
Hulshof is proposing the Missouri Rebate Emergency Jobs Act - MORE Jobs. The MORE Jobs Act will provide businesses with the capital needed to create jobs now. It will do so by providing a tax rebate for new jobs created in 2009.
Money for these rebates will come from the state's Budget Reserve Fund. Money in the fund is designated for emergencies. "The pain caused by the current economic crisis is real," Hulshof said. "Every pink slip pushes a Missouri family into turmoil. That is a disaster that impacts families, communities and our entire state. It's time to take aggressive steps to get Missouri working again."
Instead of spending $265 million to put people back on public assistance, as Jay Nixon has proposed, Hulshof will invest up to $265 million on rebates to create jobs. If the entire amount is spent, nearly 120,000 new jobs will be created.
The fund will be replenished by the additional revenue generated from job creation. The Department of Economic Development estimates that nearly $8 is returned to General Revenue for every $1 spent on job incentives.
To be eligible, a business must create at least three new jobs in non-urban areas or six jobs in urban areas. The jobs must pay a wage equal to or above 90 percent of the average county wage. The rebate will be equal to six percent of a company's added payroll.
Additional incentives will be added for jobs created in counties with unemployment rates above seven percent. Provisions will be in place to prevent fraud and abuse.
Missouri Rebate Emergency Jobs Act - MORE Jobs
Kenny Hulshof is proposing a program that will provide immediate capital for businesses to invest in job creation. Through the MORE Jobs program, the state will give instant tax rebates to businesses that create jobs in 2009. This will be the first item on Hulshof's legislative agenda.
The challenge: Congress and President Bush have pushed for a bailout of Wall Street. Kenny Hulshof voted against the bailout twice, because he believes it is more important to fuel the engine that powers our economy - small businesses on Main Street. Unfortunately, many of these businesses simply do not have the cash right now to invest in job creation.
The solution: The MORE Jobs program will provide tax rebates to businesses that create at least three new jobs in non-urban areas or six jobs in urban areas. The jobs must pay a wage equal to or above 90% of the average county wage.
Immediately upon job creation, the business will receive a rebate equal to six percent of their added payroll. For example, a business will receive a rebate of $9,000 for creating three jobs equaling $150,000 in annual wages.
In counties with unemployment rates above seven percent - "emergency counties" - the state will provide extra incentive via a rebate of eight percent of annual wages. The total rebate for one new job created will be capped at $6,000 in non-emergency counties and $8,000 in emergency counties.
The rebate will also be available in the second and third year after job creation.
How we can do it: Money for the MORE Jobs program will come from the state's Budget Reserve Fund, commonly called the Rainy Day Fund. Expenditures on the program will be capped at $265 million.
The Department of Economic Development estimates that nearly $8 is returned to General Revenue for every $1 spent on job incentives. This additional revenue will enable the state to pay back the Rainy Day fund within the required three years.
A clawback provision will be included to protect against possible abuse or for jobs that do not last more than one year. Tough criminal penalties for fraud will also be included in the legislation.
What this means to the average Missourian: Considering an average state wage of approximately $38,000 per year, MORE Jobs could help create over 100,000 new jobs for Missouri families.
MORE Jobs will provide the extra incentive, and necessary cash, businesses need to add quality jobs now.