And in other economic articles this week, the increase in online installment loans and news from the world of varsity athletics.
Missouri offers tax breaks for USDA move
The US government moving approximately 500 USDA jobs to Kansas City, Missouri, has been a deal concluded since its announcement this summer (unless the move is deemed illegal), yet the state and city offer millions of dollars in incentives.
As the Kansas City Star Editorial Board Put the, the incentives will benefit taxpayers across the country, but at the expense of Missouri services. “Missouri basically subsidizes the United States,” the board wrote. “It does not mean anything.”
The Kansas City Port Authority has voted to transform the building the USDA leases into an Advanced Industrial Manufacturing Zone (AIM), the Star reported. This state incentive allows the state to capture half of the taxes paid by the state on jobs within the district and redirect them to projects within the district.
The expected tax credits for the AIM area containing the USDA building are estimated at $ 26 million; of that amount, nearly $ 20 million is intended to return to the USDA, reports the Star. And because so many USDA employees aren’t moving from DC to Kansas City, most of the “new” jobs the incentive draws in will be locals who already live in the area and already pay taxes.
The rise of online installment loans
Bloomberg reports on a new type of loan that has become more popular, filling the void as payday loans become more regulated. The online installment loan is “a form of debt with much longer maturities but often the same kind of crippling triple-digit interest rates,” Bloomberg writes. In just five years, the online installment loan industry has mushroomed, with seven times more loans funded in 2018 than in 2014. Borrowers collectively owe $ 50 billion on these types of products, Bloomberg said.
Most payday loan interest rate caps only apply to small loans (California, which this year capped loan interest rates between $ 2,500 and $ 10,000, is an exception). Online installment loan providers usually offer larger loans, so they can often charge triple-digit interest rates, even in cities and states where payday loans are tightly regulated.
NCAA kicks off slow process for athletes to take advantage of approvals
California Passes Law Allowing College Athletes To Make Money From Their Image, more than a dozen states have started considering similar bills, and U.S. Congressman Mark Walker (RN.C.) has proposed national legislation. So maybe the NCAA had no choice: This week, the organization announced it was launching a process that would change its rules to allow college athletes to take advantage of endorsements, ESPN reports.
The NCAA board of directors voted on Tuesday to ask its three divisions to “immediately start figuring out how to update their rules so as to maintain a distinction between college and professional sports,” ESPN said.
Walker, the representative who introduced the national legislation, told ESPN he plans to continue pushing his bill forward in order to put pressure on the NCAA. “We clearly have the attention of the NCAA. Now we have to have their action, ”he said.
Meanwhile, however, Richard Burr, the senior senator from North Carolina, tweeted that “if college athletes want to earn money from their image while in school, their scholarships should be treated as income.” I will introduce a bill that makes scholarships awarded to athletes who choose to “cash in” income tax. “