Senators say the Governor's jobs plan won't work

Intro: Missouri's unemployment rate is the highest it has been in 25 years. But new measures in the legislature would produce benefits for small businesses.

Allison Blood has more from Jefferson City.

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Shiela Little, owner of St. Louis based Afro-World, had the opportunity to meet with Governor Jay Nixon to tell him what would help small businesses.

Little told Nixon the most beneficial aid is job creation tax credits and low-interest loans.

Little said even if the economy was in good condition, owning a business isn't easy.

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Description: Today is getting up, being a mom, getting the kids off to school, meeting with teachers if need be, coming into the store at eight o'clock, the store opens at nine...whew!

Little mostly hires people into entry level positions, and these tax credits would increase the amount she can pay employees.

If the Senate continues to show lack of support for this legislation, Little won't see those tax credits any time soon.

Republican Senator Luanne Ridgeway said the credits aren't broad enough to help all business owners and wants more wide-scale reform.

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Description: Well the situation isn't so much that I'm opposed individually to the tax credits. The problem is that the tax credit policy has been designed down here in our state Capitol by very particular special interest groups.

Ridgeway said she would like to see small businesses benefit since 70 percent of jobs come from those who employ no more than 20 people.

However, Republican Senator David Pearce said the tax breaks before the Senate are diverse enough to benefit all Missourians.

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Description: There are components that affect really every part of the state, thee are some for large industry, there's some for small business, there's some for research and development, there's some for beginning businesses.

Pearce said despite ideological differences on the Senate floor, he is willing to compromise.

From the State Capitol, I'm Allison Blood.

Intro: Governor Jay Nixon made job creation his top proirity this year with a measure to increase tax breaks for job creation.

Allison Blood has more from Jefferson City.

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Afro-World, a St. Louis based store specializing in African American hair styling, has only four employees.

Owner Shiela Little would like to expand her staff at Afro-World, and is looking toward new legislation to make it possible.

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Description: We're in the process of hiring a few new people at this time and if there was some type of tax credit that went along with that that would be fantastic for a small business.

Little said the state of the economy makes it difficult to pay her employees well, and these tax breaks would help her maintain decent salaries.

Sen. Ridgeway said the bill only favors special interest businesses and would like to see legislation that includes all small businesses.

From the State Capitol, I'm Allison Blood.

Intro: After speedy passage through the Missouri House of Representatives, the Senate halted a job creation bill in favor of total tax credit reform.

Allison Blood has more from Jefferson City.

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Clay County Republican Senator Luanne Ridgeway said most of the tax credits are not broad enough for most businesses to fall under it's aid.

Ridgeway said more than half of Missouri jobs come from businesses with 20 or fewer employees, but big business would win if this legislation passes.

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Description: So we need to reach out to them because that's the bulk of our job producers, but they're never going to be able to afford the guys in the Gucci shoes to come down here and make designer legislation for them.

Ridgeway said she is concerned with lobbyists' influence on the legislation.

The bill's sponsor, Republican Senator David Pearce said he believes most jobs will fall under the current legislation but he is willing to reach a compromise with opponents.

From the State Capitol, I'm Allison Blood.