EDITOR:
By now, everyone has seen the commercial of the four legged, long eared critter telling folks Amendment 5 will lower their income and property tax dollar for dollar while shifting a larger tax burden to corporations. He says he’s a Missouri Mule, but he’s really a lying jackass.
First, in order for this reduction in income and property tax to occur, revenue from sales tax increases have to meet a specific threshold. What that is isn’t exactly clear in the amendment language. What that means is that the average working stiff taxpayer will be paying both increasing sales tax and increasing property tax until otherwise notified. That’s not a win for average folks. That’s a double whammy right as inflation is already taking a larger chunk out of people’s paychecks.
Second, this vague idea that corporations will suddenly pay a higher share thru sales tax is absolute mule poop. Most corporations and general businesses are tax exempt under Missouri law.
Businesses don’t pay sales tax on merchandise or consumables they buy for resale. They don’t pay sales tax on raw materials used in manufacturing. Outside of labor, these are some of the highest expenses of any corporation and they ain’t paying sales tax on it.
Companies pay sales tax on office supplies, usually less than 3% of expenses. They also pay on vehicles, manufacturing equipment and buildings. Most of these are leased to avoid taxes. IF they are purchased, they are depreciated from three to ten years and that value is taken as a deduction against income taxes, lowering their overall burden. Often to zero.
There’s no way corporations are taking on more of the tax burden under this proposal. The people paying it will be, as usual, you and me.
Right now, Missouri is one of the lowest state income taxes in the nation. Most Missourians pay 2% or less in state income tax with top earners paying 4%. That’s the same rate as corporations. Really. Corporations making billions pay the same rate as top earning working people in Missouri.
If Missouri wanted to shift a higher portion of the tax burden to corporations like Amazon or emerging giant data centers, instead of raising sales taxes on consumers, they would raise the top earning corporation income tax by one to two percent. Instead of blowing giant holes in the Missouri budget and blowing smoke up the public’s tailpipe trying to convince them paying more is less, we would actually balance the state budget and fully fund our obligations like law enforcement, public roads and public education.
Don’t listen to the lying jackasses. Tell them to take care of Missouri taxpayers before they take care of out of state corporations bankrolling their campaigns. Vote no on Amendment 5.
--Kat Henry
Platte County
