JEFFERSON CITY — Senate Democrats were unanimous in their opposition to a bill that would raise taxes on all Missourians while simultaneously gutting state revenue. Senate Bill 26, sponsored by Sen. Will Kraus, R-Lee’s Summit, increases the state sales tax while decreasing income tax rates and business taxes over five years. The measure was given final approval on a 23-11 vote.
Senate Minority Floor Leader Jolie Justus, D-Kansas City, says the combination of increasing sales taxes while decreasing income taxes is poor public policy.
“We’re going to make it more expensive for working families in Missouri to purchase everyday necessities like food and clothing if this bill becomes law,” Sen. Justus said. “Missouri is a low tax, low service state – I get that. But now we are shifting the tax burden from corporations and wealthy Missourians to those who can least afford a tax increase.”
Sen. Paul LeVota, D-Independence, said it was ridiculous to vote on a 316-page bill that was debated and passed in one day when lawmakers are uncertain of the fiscal impact to the state.
“Why don’t we delay the final vote on this bill until we know how it is going impact the programs and services that Missourians depend upon?” Sen. LeVota asked the bill sponsor. The fiscal note attached to the bill estimates a decline in state revenue from $477-million to as much as $670-million. Sen. LeVota says Missouri should not follow the lead of neighboring Kansas in a tax-cutting race to the bottom. Kansas enacted its largest tax cut in history last year, costing the state an estimated $850 million in the coming fiscal year.
“This is the Show Me State becoming the ‘Me Too State’ to become like Kansas,” Sen. LeVota said.
Sen. Scott Sifton, D-Affton, successfully offered an amendment to SB 26 during the perfection process that scales back the original plan to cut income taxes by a full percentage point and adds an additional tax break that Sifton says will help small businesses.
Still, Senate Democrats argue the measure will shift the costs of government from corporations to working families and could threaten the state’s economic recovery.
Sen. Jason Holsman, D-Kansas City, a former teacher, says parents will pay more for school supplies if the bill becomes law. Holsman also noted during previou=s debate on the bill that Missouri is currently underfunding the school funding formula by more than $400-million. He offered an amendment that was rejected which would have delayed the provisions of SB 26 from taking effect until the school foundation formula was fully funded.
“We don’t have enough resources to fund our school formula, yet we’re going to reduce revenue by $600-million?” Sen. Holsman asked his colleagues.
Tuesday evening, all ten Senate Democrats and one Republican voted against final passage of SB 26, which now moves to the House for consideration. |
