March 2010 Mega Sales Tax/Earnings Tax
Sponsor: National Council of Jewish Women – St. Louis Section Unanimously Passed
The JCRC recognizes that, in order to fund essential social services to those in need and to maintain the economic health of the community, government requires resources. The income tax currently funds government services. In St. Louis and Kansas City local government services are funded in major part by earnings taxes. Proposals that seek to eliminate the income tax and to expand the sales tax greatly reduce the government’s ability to raise needed revenue for social services and infrastructure and will shift the tax burden to individuals who are poor or on fixed incomes.
If passed, these proposals would eliminate individual and corporate income taxes and replace them with a greatly expanded sales tax (the most recent analysis from Missouri Budget Project indicates that the sales tax would need to increase to 11 percent to replace current revenues). Most goods and services, including those not currently taxed, would be eligible for the newly increased sales tax, including child care, nursing
home care, food and prescription drugs, and rent and housing, among many others. This change would lead to a significant tax increase on low and middle income Missourians and would place a heavy burden on Missouri's economy. Moreover, SJR 29 would lead to a change in Missouri's Constitution, making it extremely difficult to amend later if changes are needed.
JCRC believes that a fair and equitable tax system includes a variety of taxes, including graduated income, sales and property taxes and which does not put an unfair burden on those least able to pay.
Therefore, it shall be specified that:
1. The JCRC opposes House Joint Resolution 56 (HJR 56), House Bill 71 (HJR 71) and Senate Bill 29 (SJR 29) and all substitutes which seek to eliminate the personal and corporate income tax completely and replace it with an expanded and increased sales tax. The JCRC also opposes efforts to eliminate existing earnings taxes without replacing them with adequate appropriate resources.
2. The JCRC shall monitor other tax legislation and ballot proposals filed in the Missouri Legislature and initiative petitions for tax proposals circulated in the State of Missouri and shall oppose additional legislative efforts and ballot proposals and ballot proposal petitions similar to those noted in section (1) above that unduly burden the poor and/or decrease the government’s ability to raise funds for critical public services.