Missouri Gov. Eric Greitens blows smoke with tough talk on tax credits

When Missouri Gov. Eric Greitens criticizes the state’s tax-credit programs, he sounds like a guy who doesn’t understand how they work.

In a recent video message about the state’s budget, Greitens complains about the influence of lobbyists and special interests in Jefferson City. “As a result of partisan politics and shady, inside deals, special interests in Missouri get more than $500 million in tax credits every single year,” he says.

Few would dispute that policymaking in Jefferson City bends too easily to the wishes of a connected few. It’s also true that Missouri offers a generous range of tax credits, including a program for vineyards and wine producers. A 2013 study by the Institute for Public Policy at the University of Missouri found that tax-credit redemptions had climbed to $629.5 million, an amount exceeding the state’s budget for corrections ($602.5 million) and mental health ($602 million).

Ensuring that tax-credit programs provide a good return on investment seems sensible. But what Greitens calls “shady, inside deals” are effectively entitlements. Meet the criteria, qualify for the tax credit. 

There are limits on some programs. Projects subject to a cap on tax credits for historic preservation are prioritized on a first-come, first-serve basis. The program has been criticized for making too much money available to developers. But first-come, first-serve seems hardly a “shady” allocation method.

Other Missouri politicians have recognized that the state may want to dial back its tax-credit problems. State auditors have made the point. Greitens’ predecessor, Jay Nixon, called for cuts. Former state Sen. Jason Crowell, a Cape Girardeau Republican, tried to get his colleagues to weigh tax credits against other budget needs.

Yet Greitens talks about the problem as if he’s the first guy to figure it out. “[N]o one asks hard questions about how the system works, or doesn’t work, for the people of Missouri,” he said in a recent statement, building on the narrative that he’s as much action hero as governor (Hard Man: The Jeff City Chronicles).

To be sure, developers and others who benefit from the state’s largest tax-credit programs want them to stay in place. But to suggest that they’re “robbing Missouri blind,” as Greitens has said, seems a bit much, particularly for a politician who received a $1 million campaign contribution from an executive poised to benefit from business-friendly legislation currently under consideration.