Let’s start with Finn and Petrilli’s argument that [Missourians] should embrace Common Core in part because the state “has already invested time and money to implement the new standards.” Basically, Washington successfully coerced [Missouri] into sinking money into Common Core, so we had better stick with it.

McCluskey and Banfield note that the Fordham piece mischaracterized the nature of Common Core’s development.

Common Core was created by the National Governors Association and Council of Chief State School Officers, associations that neither represent states nor the people of [Missouri]. Legislators represent you, and the NGA doesn’t speak for states just because governors are elected. NGA decisions have no binding ramifications for states, and it’s doubtful anyone has ever voted for a gubernatorial candidate based on what they thought he or she would do in the NGA. Governors simply have very little incentive to care what the NGA does.

Next, the Obama administration didn’t just “promote” the standards, it coerced their adoption with real ramifications. At the nadir of the “Great Recession,” it told states that to fully compete in the $4.35 billion Race to the Top program they had to promise to adopt Common Core. That is exactly what most did, before the final standards were even published. Adoption was cemented by making it one of only two ways states could meet requirements for waivers from the No Child Left Behind Act.

Finn and Petrilli claim that the Common Core doesn’t dictate curriculum and is good for school choice.

That’s like saying that government requiring you to ride a bike, but letting you pick the color and a banana seat, doesn’t constrain your transportation options. Similarly, they suggested that because lots of people are scrambling to produce Core-aligned materials, it’s fostering innovation. That’s basically proclaiming that with all car and airplane manufacturers suddenly making bikes, travel innovation will explode.

Readers shouldn’t be fooled by the folks at Fordham; the Common Core is definitely not a “victory for everyone,” as they would have you believe.

(Hat tip to John Combest for pointing out all the places the Fordham piece was published.)

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Stunt or not, this is a bad idea. According to the bill’s own sponsor, gun companies are moving because of strict gun regulations. There is no mention of the tax environment. No matter one’s opinion regarding gun control, giving tax dollars to companies that do not need them does not make sense. It is not like other tax credit programs have covered themselves in glory.

If the state really wants to make Missouri more appealing to all businesses, including gun manufacturers, it should eliminate business income taxes. That would be too simple, though, wouldn’t it?

The first step in overcoming a problem is admitting it exists. The state seems to give at least lip service to that via the Tax Credit Review Commission. But just when you think there might be hope to get our tax credit problem under control, you see stuff like this. Hopefully, this will not actually become law, but who knows at this point?

The post Gunning For Tax Breaks appeared first on Show-Me Institute.

Central Bank has agreed to make old-fashioned signature loans (that means no collateral from the borrower) of $300 to $2,500. That’s also what payday and installment lenders do. Except Fair Community Credit will lend money for slightly longer durations and at a double-digit interest rate, not a triple-digit one. That way borrowers will have a better shot at paying off their loans, rather than defaulting.

What makes that possible is Fair Community Credit’s promise to cover any loan losses from a $200,000-plus loan guarantee pool donated by foundations and individual donors.

The market is creating relatively cheap short-term credit alternatives to payday loan shops. It is incredible to watch society tackle perceived problems through voluntary interaction without the forceful hand of the state. It will be intriguing to see the results of this venture.

A hat tip to John Combest for the link.

The post Can The Market Provide Cheaper Short-Term Loans? appeared first on Show-Me Institute.

The few cities that already have such a tax will keep it, and there is an exception for Saint Peters. I don’t know why they get an exception, but that is probably a topic for another post. On the whole, this is a very good change that will reduce the constant quest by cities to look for new revenue sources every place they can.

Thanks to John Combest for the link to the original article.

The post More Good News From the State Legislature appeared first on Show-Me Institute.

The faltering economy has certainly made it tough for Missouri, but raising taxes is the last thing we should do. Cutting the budget obviously hurts some state programs but it is a far better option than tax hikes. Higher taxes would lead to fewer productive jobs and less economic growth — this is not a remedy for a healthy recovery. Increased taxes would take more money out of the pockets of individuals and feed it to the wasteful beast that is government. At a time when Missouri’s families are tightening their belts, the Missouri government should follow suit. Missouri and its citizens would be better off if the government let the people of this state keep more of their own money, allowing them invest and grow Missouri’s economy.

Hat tip to John Combest for the link.

The post Cut Spending or Raise Taxes? appeared first on Show-Me Institute.

The Missouri House Budget Committee was told two Missouri prisons could close down if the House cuts funds by five percent.

The warning was delivered to the budget officials by Public Safety & Corrections Chairman Dwight Scharnhorst from St. Louis County.

A top official told Scharnhorst how losing nearly 20 million dollars would effect on the Department of Corrections.

“His statement at the time was, ‘I will definitely have to close one institution, possibly two.’ It would be minimum security, he designated that right away.” said Scharnhorst.

Adult Prison Director Tom Clements says non-violent prisoners and those eligible for parole could be released before the end of their sentences.

So, what’s the problem? The state would save money, and people who mostly should not have been in prison in the first place would be free. I suppose those who work in the closed prison(s) would be hurt in the short term, but this would be an improvement for the economy as a whole because the money formerly spent on incarceration would be available for more productive uses. The same applies to the former prisoners who just might be able to return to (or start) useful employment. I simply fail to see the danger in this “warning.”

Link via John Combest.

The post Frankly, I’m Not Seeing the Downside Here appeared first on Show-Me Institute.

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From the article, we can see that support for this policy comes from those who would benefit most (i.e., rent-seeking behavior):

The push for the legislation comes from what is known as the Missouri Coalition for Data Centers, which is made up of businesses and local economic development agencies.

For reasons I’ve explained before on this very blog, targeted tax credits aren’t good policy. I’m beginning to feel like a broken record here!

Missouri should stop using targeted tax credits as an economic development policy, and instead let the free market decide which economic activities take place inside state borders. Officials should focus on creating tax policies that don’t favor one kind of business over another, such as reducing commercial property tax surcharges or corporate income taxes.

If other states decide to spend tax money to attract specific industries, be it filmmakers or data management centers, then Missouri shouldn’t feel the need to imitate them. To paraphrase Josh Smith’s comments on my recent post about tax credits to filmmakers, this is particularly true when Missourians: (1) are still able to get the benefits of the product by paying to receive the data management service; and, (2) don’t have to spend their tax money to entice the data management companies to locate here, resulting in a few obvious benefits.

Link via John Combest.

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