REALLY BIG SALES TAX!

From the MNEA Legislative Update

by Otto Fajen

The Senate briefly debated Senate Joint Resolution 29 (Chuck Purgason) on March 4. Sen. Purgason offered a floor substitute that makes several changes, including adding exemptions for private schools, churches, motor fuel, insurance premiums and monetary donations to charities. SJR 29 is a proposed constitutional amendment which, if approved by a statewide vote, will replace the state personal and corporate income taxes, corporate and bank franchise taxes, existing state sales and use taxes and local earnings taxes with a greatly expanded and increased sales tax on most sales of goods and services. In a masterstroke of Orwellian deception, proponents refer to this massive sales tax increase as the “Fair Tax.”  

The state needs a responsible and sustainable tax policy to fund investment in public schools and other vital services. Perversely, the so-called “Fair Tax” proposal will actually make Missouri’s tax code profoundly less fair, less adequate and less sustainable. 

Missouri NEA strongly opposes this type of impractical, regressive tax change that will keep Missouri from maintaining the revenue it needs to invest in public schools, public higher education and other vital public services like healthcare.