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UPDATE: Filibuster ends, Missouri Senate passes Ford tax breaks

Wednesday, July 14, 2010 | 11:26 a.m. CDT; updated 7:54 p.m. CDT, Wednesday, July 14, 2010

JEFFERSON CITY — Missouri senators endured a more than 20-hour filibuster and approved new tax breaks Wednesday aimed at enticing Ford Motor Co. to continue making vehicles at a Kansas City-area plant.

The legislation passed 20-7 after Republican Sen. Chuck Purgason gave up his filibuster in exasperation shortly before 9 a.m. The bill now needs only final House approval to go to Gov. Jay Nixon, who made the automaker incentives the central point of the special session he called.

The legislation would let auto manufacturers keep all or part of the employee withholding taxes they normally would pay Missouri if they improve their factories for new or expanded product lines. It's targeted primarily at Ford's Claycomo plant, which employs about 3,700 people to make pickup trucks and sport utility vehicles. Ford's many suppliers also could get tax breaks.

To offset the up to $15 million annual cost of the tax incentives, Missouri officials paired the legislation with a separate bill that would require new state employees to contribute a portion of their paychecks to their pensions and delay their eligibility for retirement benefits. The bill would require new state employees hired after January 2011 to contribute 4 percent of their paychecks to the pension fund.

Over 10 years, the automaker incentives could cost Missouri $150 million. The pension changes could save a projected $659 million over the next decade for three of Missouri's main retirement systems.

Supporters say the auto incentives are essential if Missouri hopes to persuade Ford to place a new product line at the Claycomo plant, which local union officials say is to quit making its current sport utility vehicles by the end of next year.

Ford officials have declined to comment about the company's plans for the Claycomo plant or future products.

But Sen. Luann Ridgeway, R-Smithville, whose district includes the plant, said Wednesday that Ford executives had told her they are willing to retool the plant for a new product "if they are able to work together on this" incentive package.

Purgason, who has been appealing to tea party activists in a Republican primary bid for the U.S. Senate, argued that the bill took a wrong approach to economic development. He said broad-based tax cuts, a repeal of Missouri's income tax and a "right to work" law for employees would do more for Missouri's economy than tax breaks targeted for specific big businesses.

During his filibuster, Purgason read e-mails from people supporting his efforts, read books and discussed the history of the American colonial opposition to the British leading up to the Boston Tea Party, which he said included frustration that a company lobbied the government for a tax break to unfairly compete.

He received occasional help from a few fellow Republicans, including state Rep. Jack Goodman, of Mount Vernon, who is running for a southwest Missouri congressional seat. But Purgason gave up when none of the few remaining senators in the chamber wanted to talk with him any longer about his assertion that the incentives violate free-market policies.

"I believe this is a core Republican principle and to be fighting my own party on it was frustrating," Purgason, of Caulfield, said while seated in his office shortly after the Senate vote.

Several Republican senators said they empathized with Purgason but believed the benefit of the pension overhaul and the Ford jobs outweighed their concerns about expanding Missouri's tax breaks in the midst of a budget troubles.

"The trickle-down effect of the potential loss of these jobs would be devastating for our state," Ridgeway said.

 


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Comments

J. W. Turley July 14, 2010 | 12:18 p.m.

Sen. Purgason's actions reminded us, once again, that some of our elected officials are more interested in publicizing themselves than in doing our collective business. If he really believed in what he was saying (for hours upon end), why did he abandon his effort and then blame his Republican colleagues? The answer, obviously, is that he thinks he got what HE wanted - free publicity and credentials as a "champion" of the Tea Pary cause. Ironically, what he really got was publicity that proves he's anything but a champion. Fight, or don't, but don't waste our time.

(Report Comment)
John Schultz July 14, 2010 | 12:58 p.m.

Even if your assertion is correct (and I don't necessarily believe that), at least he's not more interested in enriching a private company like most of state legislature.

(Report Comment)

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