To the editor:
Why are so many mysterious, out-of-state groups spending millions to get us to vote yes on Amendment 5 on Aug. 4? You may have received their large, shiny fliers in your mailbox or seen their ads on TV. They promise that if we pass Amendment 5 in the upcoming election, paying state income tax will end, we’ll all have an extra $3,000 in our pockets, our property taxes will be lowered, seniors will be able to “stay in their homes” and fixed incomes will be protected.
But how will Missouri pay for the daily services we depend on if state income tax, which generates about 64% of state revenue, is phased out? The answer is: There will be massive and ongoing increases in the sales tax we pay.
Amendment 5 allows total, open-ended freedom to state legislators to increase our sales tax to any level they choose and add sales tax requirements to major costs like nursing home care, real estate sales, hospital bills and many others that have been tax free. They would also have the power to decide which industries, including those owned by any of the out-of-state donors spending millions on Amendment 5 promotion, would not be subject to any tax at all. This freedom to control sales tax has no time limit and could be used by current and future legislators on whatever they want.
In addition to massive sales tax hikes, there will be budget cuts. Education will suffer most, as $1.4 billion could be cut from public schools, particularly in rural and small-town districts. All social services will be scrutinized, including those for the elderly or disabled. Struggling Missourians who have been exempt from state income tax will be devastated by higher costs. Cuts in Medicaid will be necessary if Missouri cannot supply matching federal funds for the program. Many already struggling rural hospitals will be forced to close.
Amy Blouin, president and CEO of the Missouri Budget Project, said, “State lawmakers have advanced a misleading tax scheme that would result in a massive tax hike for most Missourians. While the richest Missourians will pad their investment accounts, the vast majority of us will be subject to whopping increased costs for everything from home repairs to car insurance to burial services.”
Don’t be fooled. Vote no on Amendment 5.
Barbara Leary,
Moody
