Wednesday, April 22, 2009

Will Missouri show us the tax reform?

The Tax Foundation mentioned Wednesday an advancing Missouri bill that looks like Rep. Bill Farmer's tax reform bill that didn't get a hearing in the 2009 General Assembly.

"Missouri lawmakers are considering a drastic change to their tax system. A bill recently passed by the state’s House of Representatives would allow residents to vote on a Constitutional amendment that would eliminate corporate and individual income taxes in the state and replace them with a broad based sales tax. The plan is essentially a state version of the national FairTax proposal popular with some grassroots groups that would replace the federal income tax with a national sales tax. If the Senate passes the bill Missouri residents would be voting on the amendment in November of 2010."

More here.

Farmer's bill would eliminate state income taxes, expand and lower the sales tax, and would not require a Constitutional amendment. If the Missouri bill passes, maybe our legislature will find inspiration for this or some other kind of needed reform, rather than just raising our taxes.

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