Kansas City may soon be talking about building a convention hotel downtown. Just as with other promises of economic development, convention hotel business in other cities have never lived up to projections. Kansas Citians are right to be wary.
Saint Louis City has offered to help fund a new stadium for the Rams, but urban revitalization projects, like a new stadium for the Rams, don't bring the economic development promised by politicians, notes Policy Analyst Joseph Miller.
Policy Researcher Michael Rathbone notes that Missouri is one of the top 10 states... for corporate welfare. According to Veronique de Rugy of the Mercatus Center, the Show-Me State has given away over $5 billion to well-connected big businesses. A better approach would be across the board tax cuts.
Patrick Tuohey notes an effort in Kansas City to bring the Super Bowl to town, but is it worth it? Several research papers have shown that the tax revenue used to bring big events to a city is only rarely recouped by the revenue generated by the event. Kansas City should spend tax payers money on more pressing needs.
Gander Mountain just opened its first store in Missouri, in the St. Louis suburb of Fenton, with plans to open more locations in the Show-Me State. David Stokes is excited about this new store because the corporate policy is to not take tax subsidies as the company expands around the country:
The Kansas City Aviation Department has proposed building a new terminal at Kansas City International Airport (MCI) that could cost $1.2 billion or more. While the city has attempted to collect information on the project independently, most of the data comes from the very people who support the project. In this discussion, the Show-Me Institute will share the results of its own research on the costs, challenges, and likely results of such an endeavor.
Patrick Tuohey explains that the cost of a new terminal at Kansas City International Airport would be passed along to passengers. Higher ticket prices would result and that could cause airlines and travelers to look for alternatives to KCI.
Michael Rathbone talks about the fairness of public financing for stadiums. Currently, $24 million in taxpayer money is spent annually for the original construction of the Edward Jones Dome. Saint Louis City taxpayers contribute $6 million of that. Saint Louis County taxpayers contribute another $6 million. And the state of Missouri contributes $12 million from the public coffers each year, but it doesn't make sense that Springfield and Joplin residents are paying for a stadium that they rarely use:
In this half-hour interview with Lee Presser that first aired on Nov. 12, 2013, Show-Me Institute Policy Analyst David Stokes explains how Tax Increment Financing (TIF) works and the impact on tax policy. Stokes also reviews several notable TIF proposals.
The Show-Me Minute is a short radio advertisement to inform listeners about the work of the Show-Me Institute in a particular policy area. In this Show-Me Minute which first aired on KWTO 560AM in Springfield, MO, we discuss tax credits.