Improving State Roads and Highways
Friday was the last day of the 2013 legislative session, the conclusion of five months of work on legislation that has now been sent to the governor for his signature. One of the initiatives brought up twice in the last week was Senate Joint Resolution 16, which, upon voter approval, would have imposed a 10-year, one cent sales tax to fund certain transportation projects in our state, such as roads and bridges. Senate Joint Resolution 16, the largest tax increase in Missouri history, ultimately did not pass the finish line, largely because several senators joined forces to oppose it. Senate Joint Resolution 16 would have initiated a 24 percent increase in sales tax on Missouri citizens. If it had been an income tax increase, it would have represented nearly a 12.5 percent increase.
The condition of our state’s roads and highways has been much-talked about over the last few years; legislative committees and advisors have traveled the state studying the issue. Yes, our roads need to be fixed, but an increase in Missouri taxes is not the right solution, only the easy one. The need for good roads and bridges does not justify bad public policy. Senate Joint Resolution 16 would have taken $8 billion out of Missouri’s already sluggish and fragile economy. It would radically benefit a rather small number of Missourians, such as labor unions and construction firms at the expense of all Missouri taxpayers.
Missouri needs to focus on producing wealth, not confiscating it. We need to adjust priorities toward growing the economy and stop depending on taxing more to spend more. Oklahoma began reductions in its personal income tax rate in FY 2005; net state sales tax collections have increased by more than $694 million. Tennessee has a zero percent individual income tax and relies on a sales tax. In turn, Tennessee has surpassed Missouri in population, is able to pay government employees and teachers better salaries, has a lower debt per capita, and has lower property tax burdens. Last year, Kansas passed its largest-ever income tax cut and is seeing an increase in state revenues.
This session, Missouri passed a measure titled the Broad-Based Tax Relief Act of 2013, which will hopefully help spur economic development in our state. The legislation (HB 253), which has been sent to the governor, would reduce personal income tax by .5 percent over a period of 10 years and knock down business taxes by .3 percent over that same period.
This session, Missouri passed a measure titled the Broad-Based Tax Relief Act of 2013, which will hopefully help spur economic development in our state. The legislation (HB 253), which has been sent to the governor, would reduce personal income tax by .5 percent over a period of 10 years and knock down business taxes by .3 percent over that same period.
Conservatives’ list of possible solutions to fund roads and bridges includes policy changes like eliminating forced dues for labor unions, doing away with prevailing wage laws, regulatory reform, judicial reforms, and welfare and Medicaid reforms. But if you look at the minority party’s list it includes only one thing – raising taxes. When SJR 16 passed the Senate the first time, it passed with 24 votes: 14 votes from the majority party and all 10 votes from minority party members. Ten majority party members voted no; it takes 18 votes to approve a bill. I think it is significant that many of those who voted for SJR 16 would filibuster labor reforms, regulatory reforms, welfare reforms, tax reform, and judicial reforms. Senate Bill 31 was a 2013 proposal that never saw daylight, but opted to fund roads and bridges with a tax shift rather than an increase. The Missouri House also proposed a shift in taxes to help fund MoDOT; however, neither the House proposal nor SB 31 gained the support needed. We must not propose increased taxes as the only solution just because genuine reform is more difficult.
After years of refusing the reforms that have proven successful in neighboring states, the labor unions have succeeded in producing the type of desperation that will make even conservatives accept increased taxes as the only solution — desperate people will sometimes do desperate things. But to raise taxes now on Missourians not only would hurt our economy, it would halt any chance of addressing the real solutions for prosperity — labor, regulatory, and court reforms. If the increased sales tax had passed, its impact on our economy would almost certainly result in much less new revenue than the $8 billion projected. I can almost guarantee that the same individuals who voted for SJR 16 and opposed labor reforms would insist that the only solution would be another increase in taxes.
Lawmakers should continue discussions on how we can improve our state roads, without putting Missourians at expense. Although the 2013 legislative session ended Friday, work will continue on how to make our state a better place to live. If you have any questions about the matters discussed in this legislative column, please don’t hesitate to contact my Capitol office at (573) 751-2108. Thank you and God’s best to you and your family.
