New Report Confirms “Right to Work” Would Harm Missouri’s Middle Class
Report warns of severe economic losses, higher poverty rates
“Right to Work” legislation would be harmful to Missouri’s middle class families, according to a new report released today.
The report by Dr. Michael Kelsay, an economics professor at the University of Missouri-Kansas City, demonstrates that Missouri would lose between $4.8 billion and $6.28 billion annually in wages and tax revenue by becoming a “Right to Work” state.
Included in that cost is an annual loss of:
- $1,945 to $2,547 per family;
- $82.14 million to $107.56 million in sales tax; and
- $137.28 to $179.89 million in income taxes.
In addition, Kelsay found that “Right to Work” states had a higher percentage of their population living below the poverty level in 2012 than states without these laws. Also, “Right to Work” states had lower per capita GDP growth in 2012 than “Free to Bargain” states.
“The data clearly shows that ‘Right to Work’ is harmful for Missouri’s economic future,” said Dr. Michael Kelsay about the study.
In his report, Dr. Kelsay discredits the statistics sometimes used by the national corporate interest groups that advance so-called “Right to Work.” For example, proponents assert that “Right to Work” states attract more businesses and produce economic benefits. Kelsay’s report disproves both of these claims.
The full report, titled An Economic Analysis of the Adoption of Right-to-Work On Missouri Families, also compares “Right to Work” and “Free to Bargain” states on the basis of per capital GDP, median household income, and percentage of the population below the poverty level.
For a one page summary of the report, please click here.