Nixon: Expanding Sales Tax “Not a Good Idea”

JEFFERSON CITY, Mo. (AP) –  Missouri Gov. Jay Nixon said Thursday that proposals to replace the state’s income tax with an expanded sales tax were the wrong way to go while expressing concerns that the proposal could make it harder to compete with bordering states.

An increase to the sales tax is a particular concern for Missouri because it borders so many other states, Nixon told
members of The Associated Press and the Missouri Press Association at their annual Capitol media event.

Nixon, a Democrat, said increasing the sales tax and levying it on purchases that previously had not been subject to the tax is not “a smart economic thing or a smart thing to do.”

“That’s a significant tax increase on things that — for a lot of good reasons — have not been taxed in the past,” Nixon said.
“And to make that sort of dramatic shift at this juncture would be problematic.”

Copyright 2011 by The Associated Press. All Rights Reserved

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