Tax Debate in Missouri; Who Benefits, Who is Hurt?
JEFFERSON CITY (KMOX) - Out of all of the issues facing the Missouri Legislature this session, there couldn’t be a more black and white issue than the proposal to raise sales taxes while lowering income and corporate taxes.
Republican Senator John Lamping sees business growth and job creation with the lowering of the corporate tax.
“Expand your businesses in Missouri, consolidate here, start a new business here instead of Kansas” Lamping told KMOX’s Mark Reardon.
Democratic Representative Margo McNeil argues Missouri is already eighth in the nation for business friendly corporate taxes.
“What I think businesses want are good schools, a strong infrastructure for transportation, a nice community in which to live” said Representative McNeil.
McNeil sees raising of the sales tax as harmful to seniors and others on fixed income. Lamping argues the state already has a lower sales tax than any surrounding state except Tennessee.
“At the state level we’re just above 4% the only other bordering state thats lower than us is Tennessee, which they don’t have an income tax, everybody else is at 6% or higher.” said Senator Lamping.
“They (seniors and those on fixed income) spend every cent they get and so they really pay a higher rate than your millionaire ” said Representative McNeil.
Lamping says the sales tax increase of 6/10th % would be phased in over five years, but in any given year that state revenues don’t grow by 100-million or more, the phase-in would not be effective.
Lamping argues if the bill passes, state revenues would be over 800 million dollars higher than they are today.