[TGE-mail] neighborhood association newsletter column for March

[Jeanette Mott Oxford]

Tax Cut Proposals Deserve Closer Scrutiny
by Jeanette Mott Oxford, State Representative, District 59
Some proposed legislation sounds really sensible and worth voting for on
first hearing, but a little probing turns up details that are unexpected.
Such it is with House Bill 444, a bill to exempt Social Security benefits
received by taxpayers 65 or older from state income tax. The bill is
sponsored by Rod Jetton (R-Marble Hill). Jetton’s power as Speaker of the
House makes it likely that this bill will pass at least the House of
Representatives.
When people first hear about the bill, I think most say "Good for Jetton!
We shouldn’t be forcing Grandma and Grandpa to pay taxes on their limited
fixed incomes." That is the way Jetton characterizes the bill, calling it
"tax justice for Missouri’s seniors." What he does not state is that 72%
of Missouri seniors would get no benefit from this tax proposal. 
Missouri taxes the Social Security benefits of higher income seniors the
same way the federal government does. Low and most middle-income
taxpayers pay no or very little tax on this income now, and this makes
our state tax system more fair and equitable. The cuts Jetton proposes
would be tilted toward the wealthiest Missouri seniors. In fact, the
wealthiest 37% of all Missouri seniors would receive 98% of the proposed
tax reduction. 
Once Jetton proposed eliminating all taxes on Social Security, other
legislators quickly proposed elimination of taxes for other kinds of
retirement income, for example, veterans, teachers, firefighters, and
police. All of these professions do wonderful work to support our
society, and they deserve our respect and cooperation. In the end though,
shouldn’t the taxes we pay depend on the AMOUNT of income we receive, not
the TYPE? 
A fair tax system would put the tax burden on those most able to pay.
That is not the way Missouri’s income system is currently structured.
Missouri’s tax burden on those who have the least income is nearly twice
that of the wealthiest Missourians. The starting place for the top
bracket has remained at $9,000 since 1931 even though that equates to
more than $550,000 in current dollars.
In mid-February I will be introducing a bill to restructure income taxes
in Missouri. The "Tax Justice for a Healthy Missouri" proposal would
reduce taxes paid for the 60% of Missourians with the lowest incomes. It
includes a refundable sliding scale tax credit of $150 per person for
families with low to modest incomes. It asks those in the top 40% of
income to pay increased taxes based on their incomes.
This tax plan would produce slightly more than $1 billion in new state
revenue and therefore must be approved by a vote of the people. New
revenue is desperately needed since over $3 billion has been slashed from
crucial programs (public education, Medicaid, etc.) in the past five
years.
Good news from the 59th District: I toured Shenandoah Elementary School
on Feb. 8, and Principal Sonya Wayne showed me the new electronic
instruments received for a piano lab through a grant awarded to
Shenandoah. Congratulations to Principal Wayne and all who worked to
secure this wonderful resource. 
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