Action alert on Tax Bill SB26
SB26 is expected to come up for a final vote on the floor of the Missouri Senate early next week. Your action is urgently needed. Tell your Senator to VOTE NO.
SB26 is a disastrous tax bill. It will rearrange and modify the present tax system in Missouri. It covers an array of tax provisions which would cost the state millions of dollars in lost revenue.
What’s in SB26
Income tax – Maximum tax rate on personal income will be reduced by 0.75% over five years. Starting in 2018 the maximum tax rate will be 5.25% Business income will be reduced by five percent the first year and gradually be reduced by twenty-five percent. Corporate income will gradually be reduced down to 5.5%.
Sales and Use Tax Rates - It will increase the state sales tax from 4% to 4.5% over five years. It will eliminate the sales tax paid to amusement, entertainment or recreation.
Streamlined Sales and Use Tax Agreement - The streamlined sales tax is on purchases from businesses located out-of-state. This act requires the state to enter a multi-state agreement to facilitate the collection of these sales taxes.
SJ26 is bad because it is an untried manipulation of the state’s whole tax system. Income taxes are fair and equitable. Missouri can ill afford a reduction in state revenue with crucial state needs significantly underfunded or with programs cut.
Corporations do not have a demonstrable need for tax relief.
The sales tax is a regressive tax, negatively impacting people with low incomes who can least afford them.
The only redeeming part of SB26 is the streamlined tax which should be cut from the bill and passed as a separate bill.
SB26 would reduce state revenue to a dangerous point, creating havoc for essential state services which most people support such as education, health care, transportation and infrastructure.
WHAT YOU CAN DO
Phone or e-mail your senator as soon as possible.
Identify yourself as a constituent, not as a League member
Ask him/her to vote no on SJR26
Take action today.
League of Women Voters of Missouri
Phone: 314-961-6869 l Fax: 314-961-8393 l www.lwvmissouri.org
8706 Manchester Road, Ste 104
St. Louis, Missouri 63144-2724