Promoting new jobs

Incentives for new businesses that add jobs and produce more tax revenue have been a standard economic-development practice for years. Cities, counties and states look for creative ways to stimulate interest in new or expanded operations.

Some incentives, however, receive little interest because the benefits are realized too far down the pipeline in startup operations. Or sometimes businesses receive incentives early in the process but never actually get to the point of providing new jobs.

The Missouri Quality Jobs Act, signed into law by Gov. Matt Blunt last week during a visit to the Procter & Gamble plant north of Cape Girardeau, appears to be generating considerable interest from new and existing businesses in Missouri, and the bill makes sure businesses reap the benefits of the incentives only after new workers are on the job.

Under the new legislation, qualifying businesses get to keep a portion of the new employees' state income taxes that are withheld from paychecks. Among the qualifications are requirements to pay local average wages and provide health insurance with at least half of the premiums covered by the employers.

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Another part of the Quality Jobs Act allows cities and counties to add, with voter approval, half-cent sales taxes for economic development. Revenue from the tax can be used for infrastructure, marketing campaigns and job training.

Both the job incentives and the new taxing authority are valuable components of the Blunt administration's continuing efforts to spur Missouri's economy.