Corporate welfare

In a recent special session the Missouri Legislature passed a bill which allows the Public Service Commission to approve special low rates for the electrical power that Ameren Missouri would sell to two potential industrial customers in New Madrid County. This is corporate welfare pure and simple.

The revenue lost by Ameren in selling electricity at reduced rates to these corporations will be recouped by increasing the rates on its other customers. These will include people from ordinary working citizens to retirees on fixed incomes. In a very real sense these increased rates, no matter how small, are a regressive tax.

It will be a positive benefit to southeast Missouri if more industry and jobs can be brought to this region. But, I would offer a couple of observations.

We may never know just how much of a tax increase we are experiencing. Estimates vary from a few dollars per year to over 50 dollars per year if the inflation rate takes off. By using utility rates as a way to increase taxes, the cost of this bit of corporate welfare will, in a sense, be hidden in plain view. It will be part of every utility bill we receive, but we will never know how much of the bill benefits these corporations.

It would be more honest to have the state directly pay Ameren for the corporation's utility bills. In this way we would know how much of our tax money goes for the welfare of these companies.

John Piepho, Cape Girardeau