Patrick Wroblewski For the 72nd

(HJR 173/174) - OPPOSE

***UPDATE: THIS HAS BEEN PASSED AND WILL BE ON YOUR BALLOT ON AUG 3rd***

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Jefferson City lawmakers are pushing for a constitutional amendment to phase out the state income tax.  HJR 173/174 aims to put this on the ballot for voters to decide.

 

I would bet on if I called all of my friends in Missouri and asked if they wanted to NEVER pay state income tax again, they all would all say YES.  I don’t want to pay a state income tax either!  In fact, I feel that this would greatly boost economic growth.

 

But, you have to ask yourself….. what’s the catch?  If I had been paying someone 4%+ of my income my ENTIRE LIFE and then they told me I didn’t have to anymore, I would wonder if they found some sunken pirate treasure.

 

Well, to my knowledge, Missouri has never had much pirate activity, so where will they make up for the massive lack of revenue?

 

This got me thinking….. what states do not have a state income tax and how do they do it?

 

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming

 

Without deep diving into a state budget rabbit hole, I think of (and google) what revenue streams these states have that Missouri doesn’t…..

 

Alaska- Severance Tax (Oil)

Florida - High Tourism Taxes/Corporate Income Taxes

Nevada - Gaming Taxes/Commerce Taxes

New Hampshire - Taxes interest and dividends/High Tax on specific services

S. Dakota - High Sales Tax/Tax on services

Tennessee- High Sales Tax

Texas - Severance Tax (Oil/Gas)

Washington - Capital Gains Tax/Tax on services

Wyoming - Severance Tax (Oil/Gas/Coal)

 

Well, we have very limited oil/coal/gas production, we have already done away with the capital gains tax, and we already tax interest and dividends, so that leaves us with tourism and sales tax.  Unless Silver Dollar City has been pulling in some massive numbers I’m unaware of, our state unfortunately doesn’t compete with the likes of some others.

 

What’s left?  Hiking sales/use tax or potentially placing a tax on services.

 

Currently, in STL, KC, and some specialized districts, sales tax can reach over 10%.  Imagine if that jumped to 15%, or up to 20%!

If it was a slow hike, you may not feel the impact immediately, but it’s there and it will be growing.  No state income tax sounds fantastic and could entice folks to move to Missouri, but would it hurt us more than help us?  That potential 5-10% would definitely add up over the year.  How badly would that affect a family struggling to make ends meet?

 

Imagine a tax on services…….  Your babysitter is now required to charge you a tax.  A haircut jumps from $40 to $45.  You could pay a tax on your RENT.  It seams crazy, but it could be possible.

 

As I have always done on the Overland City Council is try to see the issue from every point of view.  Who is this going to help, who will be negatively impacted?  There is ALWAYS a give and take. What is best for the folks that have elected me to represent them?

 

 Please take the time to think it over and do some research.  As the facts develop, I will make sure to update.