As the Legislature proceeds with its 2016 session, the economic outlook is worrisome for our state. Revenues are down. Jobs have not returned to their pre-recession level. The state’s GDP is shrinking and the state is losing population.
Against the backdrop of troubling news, it might be expected the Legislature would take every opportunity to encourage new businesses, especially small businesses, which remain the lifeblood of our state’s economy.
When big companies — Nissan, Toyota, Yokohama Tire or Continental Tire — open plants in our state they receive hundreds of millions of dollars in tax breaks and incentives. Their arrival is heralded as a real boost to our economy. That is true, certainly. But the fact remains that most jobs in our state are created by small businesses, companies that neither ask for nor receive state tax breaks or incentives.
But our legislators, and in particular Rep. Jeff Smith (R, Columbus), have dealt a needless blow to one group of small business entrepreneurs. Smith killed a bill that would allow the state’s fledgling craft brewery industry to sell its product on its premises, something that is permitted in all other states.
Commentators have credited craft breweries with playing a pivotal role in downtown redevelopment. Avondale, formerly a dormant neighborhood in Birmingham, Alabama, has been reinvigorated by the presence of Avondale Brewing Company. The brewery is a magnet for young professionals, spawning the growth of shops, restaurants and entertainment venues.
Craft beer is a booming enterprise. According to the National Brewers’ Association, there are now 3,739 craft breweries in the U.S. Those breweries have created 115,000 jobs.
Mississippi came late to the party. There are just eight craft breweries in the state — including one in Starkville. Others are in the planning stages. There is enormous growth potential in the craft brewery industry and most states are eager to assist those efforts.
But in Mississippi efforts to tap into this lucrative and growing market has been made considerably more difficult by elected officials.
Smith, chairman of the powerful House Ways and Means Committee, killed a bill that would address this need. Smith said he had made a promise not to allow the bill to proceed. Smith did not divulge to whom he made that promise when asked by an AP reporter, nor did he respond to inquiries from The Dispatch.
We do know that in 2015, campaign finance reports show Smith received $1,000 from Anheuser-Busch, $800 from the Mississippi Malt Beverage Association and $500 from the Distilled Spirits Council, organizations that view craft brewers as a threat to their profits. Was Smith’s action on this bill an installment payment or a debt of gratitude?
We would very much like to know who Smith made that promise to because we believe his constituents are entitled to know that, too.
The only promise that we are aware of until now is the promise Smith made to the citizens of House District 39.
Apparently, Smith’s promise to this anonymous entity is more important than his pledge to the people who sent him to Jackson to represent their interests, because killing this bill does not achieve that purpose. Rather, it sends a sobering message to small entrepreneurs here in our community and throughout the state: The Legislature serves the interests of big business.
The Dispatch Editorial Board is made up of publisher Peter Imes, columnist Slim Smith, managing editor Zack Plair and senior newsroom staff.
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