It is time to drive a stake through the heart of the Dracula state income tax and open Missouri for business. Amendment 5 to the Missouri constitution would permanently eliminate our state income tax. Future generations would bless us for protecting their pocketbooks.
Kansas has shown us what not to do. Governor Brownback famously made sweeping tax cuts all at once without a plan. Dorothy, we aren’t in Kansas and there really is no place like home.
Currently, the Missouri state income tax is a regressive tax; which means the poor pay proportionally more than the rich. If a Missouri resident earns as little as $9,200 per year, then he pays the top tax rate of 4.7% on his earnings. This tax punishes workers. Without an income tax, Missouri is poised for the type of economic growth that leads to higher income and more take-home pay.
On August 4, Missouri voters have a grand opportunity to fix our outdated and broken tax system, just as America did 250 years ago. It is crucial to understand that Amendment 5 will give the power of the purse back to taxpayers and reduce the control of our state government officials.
Over the years, politicians have continuously snuggled up to fat cats, and the result is our tax code is riddled with loopholes. This system is neither efficient nor fair, but it does make the government more powerful when it can pick winners and losers in the tax code. Budget issues are complex for even the most intelligent, honest lawmakers that Missourians have elected as they have to grapple with an outdated system.
Importantly, as Governor Kehoe and others have said, there’s another big issue Amendment 5 will fix: Our unfair, overly high current tax system encourages successful people to leave Missouri, and it keeps companies from coming in. Let’s break this down: The higher income “snow birds” do not necessarily want to spend six months and a day in Florida, but they do want to save money. We need Missourians to return home, and residents leaving for Tennessee or our other neighboring states, because then they would spend their money in Missouri and pay Missouri sales tax on their consumption.
Amendment 5 would benefit more than retirees. Missouri’s “brain drain” is real; young people need jobs, and attracting more businesses would create more openings for them. Existing Missouri businesses would also benefit as a growing population increases demand for goods and services, from local supply stores to wedding planners.
Our state still needs some money to operate, and the sales tax base will keep the rate low. Right now, retail goods are only 30% of spending, which means there is a whole lot of spending that is exempt from sales tax. Sales tax does not have to be high to generate income; in fact, low taxes on a wide range of sales will generate more income without negatively impacting one sector.
Just like 250 years ago, standing strong against an outdated, unfair, overly high system of taxation will be transformational to our great State. We are the Show Me State, so below is a question-and-answer panel about Amendment Five.
Still have questions? Visit EagleForum.org, as we will post additional information. On board already? Sign up on our website to join the groundswell of support today.
