Excited by New Industry News in Mississippi | Editor’s Letters
TL/DR –
The Mississippi state legislature and Governor Reeves have approved a joint venture aimed at boosting the commercial electric vehicle (EV) battery business, following strategies implemented by Joe Biden and the Democrats to incentivise factory construction in America. A new EV battery plant is expected to create around 2,000 high-paying jobs in Mississippi, with the state pledging $187 million in grants, a few more millions in bonded money, and a controversial 10-year, 100-percent corporate income tax exemption for the three participating companies, Daimler, Cummins, and PACCAR. The author praises the decision, despite disagreeing with the tax exemption for companies with significant profits, suggesting that profitable corporations should pay their fair share in taxes.
Commercial EV Battery Business Boosted by Joint Venture Approval
The recent “Joint venture OK’d to boost commercial E.V. battery business” article has shed light on the firm decision of Governor Reeves and the state legislature to join the modern economy. The strategy mirrors that of Joe Biden and the Democrats, who incentivize businesses to construct factories in America. Following the passing of the CHIPS and Science Act and the Inflation Reduction Act by Democrats, both of which offered subsidies and tax breaks, manufacturers have invested roughly $220 billion in construction over the last 18 months (source).
The new EV battery plant and the 2,000 high-paying jobs in Mississippi add to this economic growth. Mississippi’s Republicans, now in command, have rightly earned praise for this strategic move. The state has committed $187 in grants and additional millions in bonded money to ensure this project’s success.
However, it is noteworthy that the Mississippi Republicans included a 10-year, 100-percent corporate income tax exemption. Three companies – Daimler, Cummins, and PACCAR – each owning 30% of the venture, are highly profitable. These firms should, in principle, pay their fair share in taxes. This is an area of contention with the Republicans, even as they garner applause for their evident progressiveness.
It’s worth pointing out that when Democrats passed the CHIPS Act and the Inflation Reduction Act, these met with criticism from right-wing pundits.
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