Missouri senator rolls out new tax overhaul proposal (St. Joseph, Lee's Summit: sales, real estate)

[Versatile]

Trying to keep up with the state next to you might not be so wise especially when you look at the finances of Kansas. Let's here some opinions. I have read that Ks has cut back mouch it takes 3 months for a person on MEDICAID to get an appointment to see a Psychiatrist. That is bad!

Missouri senator rolls out new tax overhaul proposal - St. Joseph News-Press and FOX 26 KNPN: Local News



JEFFERSON CITY, Mo. — A new proposal intended to keep pace with tax-cutting Kansas would shave Missouri's income tax rates for rich and poor residents while also reducing taxes for businesses. But to partially offset the lost tax revenues, shoppers could be charged more at stores and online.

The revised legislation by Sen. Will Kraus was expected to debut for debate Wednesday in the Missouri Senate, where chamber leaders have pledged to try to bring a tax-cutting plan to a vote within the next couple weeks.

Kraus, R-Lee's Summit, is proposing to gradually reduce the state's income tax rate by 1 percentage point over five years while gradually increasing the state sales tax by one-half of a percentage point over that same period.

In addition to an overall income tax cut for individuals and businesses, the new plan would roughly double Missouri's current income tax deduction for people with adjusted gross incomes of less than $20,000 annually. The legislation also attempts to boost tax collections by tightening the requirements for when retailers must collect Missouri taxes and by joining a multi-state compact that collects taxes from online sales.

When the income tax cuts are partially offset by the sales tax increases, the net effect could be a more than a $600 million reduction in state tax revenues, according to estimates from Kraus' office.

Will this be next?

Kansas Gov. Sam Brownback, a Republican, has proposed generating state revenues by eliminating income tax deductions for the mortgage interest and property taxes paid by Kansas homeowners.

[MUTGR]

Missouri lawmakers vote to roll back income taxes - Yahoo! News

[Curmudgeon]

Originally Posted by MUTGR

Missouri lawmakers vote to roll back income taxes - Yahoo! News

It has passed the Senate.

For this retired political and legislative analyst I particularly "like" this quote: ""Missourians deserve the truth, and the truth is that SB 26 represents an affordable tax cut that will save every taxpayer money," Kraus said."

What it doesn't say is that this bill will cost both the poor and the elderly money because they likely don't owe income tax to begin with but their day-to-day shopping costs will rise.

The WHOLE truth would be refreshing, wouldn't it?

[brushrunner]

Originally Posted by Curmudgeon

It has passed the Senate.

For this retired political and legislative analyst I particularly "like" this quote: ""Missourians deserve the truth, and the truth is that SB 26 represents an affordable tax cut that will save every taxpayer money," Kraus said."

What it doesn't say is that this bill will cost both the poor and the elderly money because they likely don't owe income tax to begin with but their day-to-day shopping costs will rise.

The WHOLE truth would be refreshing, wouldn't it?

Yelp it would hurt me and my wife

brushrunner

[geofra]

Wall Street often says that your portfolio should be diversified to help mitigate the risks of the market. Wouldn't the same concept apply to government revenue sources?

It seems to me that going to a sales/property tax only system is coming close to the old warning about putting all of your eggs in one basket.

I know I'm oversimplifying things a bit, but a three-legged stool (income/sales/property tax system) stands up better than a two-legged stool (sales/property tax system).

[Flyover_Country]

I sure hope the income tax cut passes. I spent a couple of decades in Missouri and it is really home to me. I really do want to come back. I currently live in South Dakota as work took me there. There is a huge difference in taxes as SD has no state income tax and even the most populous county with a sixth of the entire state's population doesn't charge property taxes on anything except real estate (no property taxes on cars, farm animals, equipment, etc. like many MO counties do.) They have massive growth as a result, which is why I went up there and braved -20 temps to do so. I did the calculations on how much more I would have had to pay if I had stayed in MO and it was a couple months' paychecks. Missouri is an excellent state with a lot of good people and has some of the best varied topography, overall decent weather and culture I have ever seen- and I have lived in and been in a lot of the United States. We need to make a good argument as to why the classic "center of the nation" needs to be a great place to come and set up shop instead of letting the pancake-flat, cold as a well digger's butt Dakotas steal your thunder. There isn't oil in the Ozarks like there is oil in North Dakota but there isn't oil in South Dakota either. Yet 2 miles south of me is one of the counties in the top 10 for growth in the entire nation (Lincoln County, SD.) Missouri needs to step up to the plate and join the Great Plains and Southeast in lowering excessive taxes and lessening excessive regulations rather than join the decrepit and bankrupt coastal (including the "North Coast") states in continuing to punish economic success and economic activity.

[Versatile]

I am happy with our population levels. Why do we need more?

[marigolds6]

Ironically, though, most of South Dakota's growth is attributed to federal government employment, particularly Ellsworth Air Force Base after it was one of the bases that survived the BRAC list. MPR: South Dakota's Ellsworth AFB to stay open

This recent study is very informative though:
Off the Charts Blog | Center on Budget and Policy Priorities | Big Cuts in State Income Taxes Aren

Basically, cutting taxes does not necessarily hurt a state, but it definitely does not help a state.

[Curmudgeon]

Originally Posted by Versatile

I am happy with our population levels. Why do we need more?

A rep for you and, Hear! Hear! We moved to MO years ago to get out of population crush, urban sprawl, high traffic, high crime, polluted air, "popular," "progressive" state for a reason - actually several reasons - and have no desire to regress, thank you very much!

[Flyover_Country]

Originally Posted by Versatile

I am happy with our population levels. Why do we need more?

There doesn't need to be a large population growth but the state needs to at least maintain its current levels. Else you end up like Iowa or Michigan and have a state with a shrinking, graying population and little economic activity. It's not fun to try to live in a dying area unless you are close to doing so yourself.