Capitol Report—Fair Taxation Bill and Tea Parties
by Chuck Gatschenberger
April 18, 2009
MISSOURI HOUSE PASSES FAIR TAXATION BILL
It’s tax time once again and many of us quickly scrambled to get everything together before April 15. It seems like we have no alternative to this uncertain and sometimes unfair system. Where are our dollars going? Will any of it be returned back? Luckily, there is another option that could lead to tax equality for all Missourians: a Fair Tax system.
The Fair Tax system would replace Missouri’s individual income tax, corporate income tax and sales with a simple fair sales tax of 5.11% on retail sales and taxable services. Of course before this new system is adopted, our citizens would have to agree by vote. If approved, the Fair Tax system would begin January 1, 2012. Missourians would no longer pay state income taxes and instead be taxed on the goods and services they purchase.
It’s important to keep in mind that a consumption tax would still be progressive in nature as wealthier Missourians tend to spend more and thus would continue to pay more. The bill also prevents disadvantages by providing rebates to lower-income and larger families.
There are several economic factors that make such a change desirable. With a Fair Tax, wage earners would see an immediate increase in disposable income as there would no longer be state withholdings from their paychecks. In addition, businesses would save dollars as they no longer waste resources on tracking and paying income and franchise taxes. Instead, they would be able to use the dollars saved to expand, increase productivity and provide additional benefits to employees.
The refunds provided in this system would greatly benefit lower-income Missourians who would keep more of their paychecks and have most of their paid sales taxes refunded to them. They would see what amounts to a significant pay raise. Overall, the change would encourage Missourians to work harder since the additional money they earn would flow into their own pockets rather than those of the government. This will empower Missourians to decide how their dollars will be used.
I am confident this would transform our current overly-complex system into one easily understood by all Missourians. This would be a much more accessible, and, as the name implies, fair. Most importantly, you would decide whether to save or spend your income in whatever way you choose. To me, that is the best and fairest system of taxation possible.
MISSOURI TEA PARTIES THIS WEEK
This week, I had the privilege to address crowds outside the Capitol regarding the ineffective policies of the federal government. We have been taxed far too much, spending is out of control, and I believe it is time for relief on the American people.
I am a Financial Planner by trade. I have and will always tell my customers that I will never forget that this is YOUR money and I will treat you and YOUR money with the respect you deserve.
I still say the same to you as an elected State Representative from our great State of Missouri. THE ELECTED OFFICIALS IN WASHINGTON D.C. SHOULD DO THE SAME!
Recently, I heard a quote from our current Governor on CSPAN’s Washington Journal. He said, “Missourians paid their taxes, and if there’s debt, Missouri kids and grandkids will pay that debt off.” We need to call, send letters and visit every one of our elected officials and tell them that this is OUR money.
I was at a tea party on Tuesday on the Capitol steps in Jefferson City and I saw three signs that really caught my eye. They read:
1. Do not spread my wealth around, spread my work ethic around.
2. Honk if you pay your mortgage.
3. A young man’s sign read: Keep your hands off my piggy bank!
With your help, we will continue to send a message to all elected officials that we are watching every move they make with OUR money and we are not happy with their actions.
Remember to call, write and visit all your elected officials and tell them what you think about their actions regarding the stimulus package.
STAY IN TOUCH
As always, please let me know your thoughts about these or other matters of concern by calling my office at 573-751-3572 or by e-mailing me at chuck.gatschenberger@house.mo.gov.
FUN FACTS
*The Legislature must pass the 2010 FY Budget by May 8.
*There are approximately 20 legislative days left in the 2009 legislative session.
*BEWARE: Copperhead snakes leave their winter dens this week.
Copyright 2009 Neighbors About Town
