Lawmaker invites gun manufacturer to relocate to Sooner state

[Poke78]

I wish Oklahoma would provide more incentives for manufacturing jobs and companies. Remington would simply be a huge plus!

How about a 5% rebate from state payroll taxes on a new jobs payroll? It's already in the law: http://okcommerce.gov/location-or-expansion/incentives/quality-jobs-program/

Other incentives include an exemption from sales tax for manufacturing purchases, new employee training program support, ad valorem tax reductions...

What else would you suggest?

 

[vvvvvvv]

If anyone wants to put a group together to bring them here, I'll go in for a few shares. Keyword is few.

Group buy, anyone?

 

[ASP785]

How about a 5% rebate from state payroll taxes on a new jobs payroll? It's already in the law: http://okcommerce.gov/location-or-expansion/incentives/quality-jobs-program/

Other incentives include an exemption from sales tax for manufacturing purchases, new employee training program support, ad valorem tax reductions...

What else would you suggest?

We are already pay a reduced sales tax rate for manufacturing related equipment. The 5% payroll rebate is great, but what about 10%? Utilities are a huge cost. Municipalities will often provide incentives in this area, but what about on a state level? State purchased land for future manufacturing at a reduced or free cost.
However, I am opposed to any sort of ad valorem or VAT tax. There are enough taxes already. If governments want to raise revenue, then create jobs.

There are multiple things we could do. At no point did I say Oklahoma manufacturing was weak. I am not sure where that came from, especially since my paycheck comes from a business with over 70 manufacturing plants in the U.S. alone. Until I stop seeing 'Made in China' on the vast majority of consumer goods, I will continue championing for increased manufacturing in Oklahoma and United States.

 

[Poke78]

We are already pay a reduced sales tax rate for manufacturing related equipment. The 5% payroll rebate is great, but what about 10%? Utilities are a huge cost. Municipalities will often provide incentives in this area, but what about on a state level? State purchased land for future manufacturing at a reduced or free cost.
However, I am opposed to any sort of ad valorem or VAT tax. There are enough taxes already. If governments want to raise revenue, then create jobs.

There are multiple things we could do. At no point did I say Oklahoma manufacturing was weak. I am not sure where that came from, especially since my paycheck comes from a business with over 70 manufacturing plants in the U.S. alone. Until I stop seeing 'Made in China' on the vast majority of consumer goods, I will continue championing for increased manufacturing in Oklahoma and United States.

Yes, the Manufacturing Sales Tax Exemption Permit (MSEP) already exists. That was my point -- it is an existing incentive for manufacturers. You'd actually be surprised about some manufacturers that have overlooked this.

10% would be more than they are paying in from withholding on the employee paycheck so that's never going to fly in the Legislature.

Utilities: currently, both AEP and OG&E have incentives to reduce usage by improving lighting efficiency. Manufacturers that do so also qualify for a federal tax incentive if their savings are large enough. Some localities subsidize the initial connection cost when new facilities are built in their industrial parks.

Land: usually a local incentive in designated industrial parks.

Ad valorem: you do understand that the county property tax is an ad valorem tax, right??? I agree with you about VAT, at least as practiced in Europe.

Government cannot create jobs, it can only create conditions that are conducive to job creation.

 

[ASP785]

Yes, the Manufacturing Sales Tax Exemption Permit (MSEP) already exists. That was my point -- it is an existing incentive for manufacturers. You'd actually be surprised about some manufacturers that have overlooked this.

10% would be more than they are paying in from withholding on the employee paycheck so that's never going to fly in the Legislature.

Utilities: currently, both AEP and OG&E have incentives to reduce usage by improving lighting efficiency. Manufacturers that do so also qualify for a federal tax incentive if their savings are large enough. Some localities subsidize the initial connection cost when new facilities are built in their industrial parks.

Land: usually a local incentive in designated industrial parks.

Ad valorem: you do understand that the county property tax is an ad valorem tax, right??? I agree with you about VAT, at least as practiced in Europe.

Government cannot create jobs, it can only create conditions that are conducive to job creation.

I am struggling to understand the points you are trying to make. You are simply quoting exisiting programs back to me, programs in which I am aware of. If you are only looking at payroll withholdings, the 10% wouldn't make sense. More manufacturing jobs increases the revenue generated by municipalties from things like sales and property taxes and supports further economic activity in service related industries. Without all the data, it is tough to quantify the economic impact.

When you stated ad valorem, I interpreted your post to mean an additional tax, hence why I thought you were suggesting a VAT.

The government can and does create jobs regularly. Saying it doesn't is misguided. However, that really wasn't my point, so I would have phrased it differently. My point was along the lines of what you stated, in that governmen'ts roll should be to foster the environment of economic activity.

If you are simply arguing for the sake of arguing, then this conversation will end here. I have nothing to prove over the internet. If you are wanting to dialogue on legitimate ideas to increase Oklahoma's manufacturing base, then my appologies, let's continue the discussion. However, I will readily admit I have not researched the topic to the extent where I could provide a full dissertation and am not prepared nor inclined to do so at this time.

 

[348]

Not that the poll matters, but you can vote as many times as you want.

 

[Old Fart]

I'd be surprised to see it happen. The cost of relocating would be tough to absorb. That being said though there is some merit to relocating here. Our central location is often underlooked.

 

[BamaAlum97]

I would love to see it happen...not very confident that it will. I would likely go out of my way to make a few purchases from them if they did relocate.

 

[Poke78]

I am struggling to understand the points you are trying to make. You are simply quoting exisiting programs back to me, programs in which I am aware of. If you are only looking at payroll withholdings, the 10% wouldn't make sense. More manufacturing jobs increases the revenue generated by municipalties from things like sales and property taxes and supports further economic activity in service related industries. Without all the data, it is tough to quantify the economic impact.

When you stated ad valorem, I interpreted your post to mean an additional tax, hence why I thought you were suggesting a VAT.

The government can and does create jobs regularly. Saying it doesn't is misguided. However, that really wasn't my point, so I would have phrased it differently. My point was along the lines of what you stated, in that governmen'ts roll should be to foster the environment of economic activity.

If you are simply arguing for the sake of arguing, then this conversation will end here. I have nothing to prove over the internet. If you are wanting to dialogue on legitimate ideas to increase Oklahoma's manufacturing base, then my appologies, let's continue the discussion. However, I will readily admit I have not researched the topic to the extent where I could provide a full dissertation and am not prepared nor inclined to do so at this time.

I'm not into arguing via technology so just set that out of your mind because I want to keep it positive. I mentioned the various current programs because your original post seemed to overlook those programs as legitimate incentives that needed to be considered. My goal was to not assume anything because that only leads to misunderstandings so I just tried to put something on the table to start the conversation. I'm glad you're aware of these incentives because they do have a history of drawing companies to OK.

I see where you're coming from as to the wage multiplication factor but from a state finance perspective it's still about cash flow. They aren't going to give more than they are directly getting from the company that is in an OQJ Incentive Contract. The Legislature still believes this to be the best use of incentive dollars where the company is paid directly for proven performance. There have been other incentives that do not have a stellar record of payback and the Legislature is still in the hunt to eliminate incentives that don't return more to the state than they directly cost.

It seems we're in agreement about the government's proper role in economic development. Since that is a big part of my job, I'm all about growing the manufacturing base in OK. On the original subject of the thread about getting a gun manufacturer to OK, I had informal contact with large maker of handguns and rifles based in the east about 6-1/2 years ago. The CEO was visiting OKC for an event I attended where he was the featured speaker and I had time to speak to him and his staff on some of the key points from the presentation. I strongly recommended they consider bringing a facility to OK but they seemed very tied to their current location and workforce.

 

[bigbang]

More guns equals more violent crimes, according to Biden and Boma. Can't have that.