Friday, February 12, 2010

Higher Sales Tax Proposal is Bad Magic

By Amy Blouin

Wouldn’t it be nice if Missouri could magically find the money needed to pay for services people need and to make the sort of investments that help build a prosperous future?

That’s pretty much what some state lawmakers are proposing. Wave a magic wand and — poof! — the state income tax disappears. Wave it again and — poof! — corporate taxes disappear. How would reducing revenues get us the money we need? Watch carefully as supporters of this plan pull a rabbit out of their hat. But wait, that’s not a rabbit — it’s a sales tax like none ever before seen in Missouri or any other state.

Measures have been introduced in the state House and Senate that would essentially take this approach to paying for Missouri’s needs. And like all magic tricks, they involve sleights of hand that, when closely observed, reveal that things are not as they seem.

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