MTJ OPPOSED House Bill 444

• Already the vast majority of the elderly receiving Social Security benefits are not paying state income tax on those benefits. Generally if Social Security Benefits are the only income a Missourian receives they will not pay tax on those benefits.
  
  
• The way Social Security benefits are taxed now protects fixed income seniors from paying a tax on these benefits. Because of safeguards in place that protect low and most middle income from paying this tax - this bill will benefit mostly better off Missourians.
  
  
• Only 28% of elderly Missourians would see a cut in their taxes as a result of HB 444---that means that 72% of Missouri's elderly will see no benefit from this bill.
  
  
• The state cannot afford this cut in revenue. We have had more than $3 BILLION in cuts to basic services to Missourians over the past 5 years. (These cuts include education, health care, agriculture, corrections, mental health and other essential services.) The amendments by the House committee and on the House floor reinforce the fact that these "tax cuts" do not help people struggling to make ends meet, but benefit only the wealthiest Missourians.)
  
  
• The state has many unmet needs including thousands of Missourians who have been cut from Medicaid and an under-funded public education system.  Now is not the time to offer permanent tax cuts when many Missourians are hurting.
  
  

• Income tax is the only state tax that may be based on the ability to pay---the basic meaning of TAX JUSTICE. HB 621 is an attack on the state income tax and an attack on state government. It would increase the unfairness and inequity of our state tax system, and place a heavier tax burden on lower income taxpayers.
  
  
• This proposal would destroy the Trust Fund established by legislation in 1993 (SB 380) that reduced the amount of the federal income tax deduction allowed on state income tax returns. The dollars gained from that legislation provided the money required for more equitable financing of our elementary and secondary public schools.
  
  
• The federal income tax deduction is now limited for individual income tax to $5,000 for an individual taxpayer and $10,000 for joint taxpayers; and for corporations, to 50% of the federal income tax. This change in 1993 was the most progressive tax change since 1971, and affected only taxpayers with $200,000 or more annual income.
  
  
• In 2007, funding of our public schools is inadequate, even though our state constitution requires that state funding for public elementary and secondary school must be our state's first spending priority. It is estimated that at least $800 million more is needed yearly for adequate funding. The state's cutback in school funding has resulted in the need for local school tax increases.
  
  
• Missouri's income tax structure is badly outdated. The top tax bracket of $9,000 was established in 1931! The last time brackets and rates were changed was in 1971!
  
  
• Rather than acting to make our tax system more unfair, we need an equitable revision of our state income tax structure so it may produce more adequate revenue to meet Missourians' needs in a fair and equitable way. House Bill 1017, filed by Rep. Jeanette Oxford this session, shows the way to do that.
  
  

HOUSE BILL 621 was assigned to the House Special Committee on Tax Reform on March 1. A public hearing was held March 6. There was no further action on this bill.

However, the text of the bill was added to SENATE BILL 30 with House Amendment 17 in floor debate in the House on April 19. That was removed from the bill in the Conference Committee Substitute version of the bill that was passed.

To find the summary and text of HB 621, Click here.

---

Senate Bill 30

The Conference Committee Substitute for HCS for SB 30 was passed by the legislature and signed into law by the governor. The state Chamber of Commerce is rejoicing at the sales tax exemptions in this Act.

MTJ Opposed HCS SB 30.

To find the summary and text of CCS/HCS/SB 30 (the enacted bill), Click here

The House attached 17 amendments to this bill and all were costly to the state's ability to pay for the services the people need. Most may be considered provisions that benefit "special interests." See a partial list of these in the summary of HCS SB 30.

To see the list of all actions on SB 30, click here.

To see the summary, the text, and the list of all actions on HB 327, click here.

This bill became a mismash of special interest tax credits, and flawed economic development provisions. After citizen pressure on the governor to veto on it, and even opposition to the bill from politically conservative groups, the governor did veto HB 327 on July 6.

There is speculation that the governor may call a special session of the General Assembly for consideration only of the "Quality Jobs Program" portion of HB 327. Some legislative leaders are objecting to that limitation since they want to include tax credits and other items of special interest to their supporters and campaign contributors.

---

Last update: 7/14/07

Back to MTJ Home Page