The Income Tax Cut

It’s going to take some pretty strong lobbying to convince me that the governor’s plan to eliminate the state income tax and make up for the lost state revenue by increasing the sales tax is a good idea.

We already have seen a major investment in promoting passage from an anonymous source—almost two million dollars so far.  Our campaign finance laws allow big money special interests or individuals to hide behind a legal campaign money laundering system that has been abused by both side of the aisle.

If I contribute $100 dollars to someone’s campaign (which never have been done or will be done), my name becomes a public record. If I were wealthy enough to buy part of the Missouri Constitution, I could hide my attempted purchase.

Getting back to the topic:

Here is an issue that could have a chilling effect on our public services and public protections that hasn’t been discussed as far as I have heard:

The local sales tax has been used throughout Missouri to improve local infrastructure—streets, sewer systems, parks, and improved public safety.

This last point has been highlighted in the last couple of weeks by requests from sheriffs in Boone and Cole County for temporary sales tax increases to fund jails and jail expansions.  The Boone County Commission is putting a 3/8 cent sales tax increase on the November ballot with proceeds building a new jail.

The Cole County sheriff has just asked his county commission for a temporary sales tax to improve and expand current jail—which was built with proceeds from a temporary sales tax increase.

Temporary local sales taxes need voter agreement.  It seems that if voters are given a specific amount to be raised and significant enough purpose for the increase, they are likely to support it as a matter of community self interest. We make this observation without having seen any professionally-done studies on the subject; it just seems to work this way. The system gives citizens an opportunity to evaluate the benefits they will receive versus the cost of obtaining them.

But if the income tax is cut and the state imposes new sales taxes on a myriad of products and services, the local voter has no say in how that money will benefit their communities. And the higher the state-imposed sales tax is (the legislature can determine what the rate will be), might it become harder for voters to approve temporary increases at the local level?

The income tax/sales tax proposal headed for the statewide ballot in August might be nice for those who have a lot of money and don’t want to share it but a lower income tax won’t much help our lower income residents—and a higher statewide sales tax not only will increase financial problems for the paycheck-to-paycheck families, it could weaken voter support for a temporary tool used by local governments  to increase public services and public safety.

I might find a temporary sales tax for a new jail or improvements to an existing one—or other public improvements and programs— more than my billfold can bear if the state taxes my purchases to make up for the loss of revenue that seems to benefit people higher up the fiscal food chain than I am.

Until we are better persuaded, the proposed income tax cut appears from our hilltop view to be a benefit I can’t afford and that my city and county can’t afford either.

I’m always open to efforts to make me think otherwise.  But for now, a billionaire’s money is unlikely to buy my vote.

Let me know what you think......

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