Join our Online Group!Missouri House committee considers pros and cons of Fair Tax proposal
March 11, 2009 by Charlie
Filed under FairTax News
From Missouri House committee considers pros and cons of Fair Tax proposal
House committee considers pros and cons of Fair Tax proposal
By Steve Walsh
The House Committee on Tax Reform is considering legislation that would replace the existing state income tax with the so-called Fairness Tax – an idea designed to raise state revenues through a 5.11 percent state sales tax on new purchases of goods and services.
There are actually two bills that are being rolled into one – HB 814- the main piece of legislation which is sponsored by Representative Ed Emery (R-Lamar) and a secondary bill – HB 318 – sponsored by Representative Chris Kelly (D-Columbia). Both aim to bring about what the sponsors believe would be a greater degree of fairness in the tax system.
One of Emery’s goals is to bring about simplicity.
“The fundamentals that give the Fair Tax an advantage are it’s simple,” says Emery. “You don’t have to sit at home and run spread sheets and buy tax software to be able to determine what your taxes are going to be. You can look on every receipt and see exactly what you’re paying for state government.”
State Representative Jeanette Mott Oxford (D-St. Louis) doubts the idea of increasing the sales tax would bring about fairness.
“Your formula,” she tells Emery, “Will not actually help those who have inadequate resources come up with what it takes to live.”
Emery explains the poor will qualify for a sales tax rebate.
The issue of the wealthy paying more because they can afford to do so was raised. Representative Kelly responded by expressing his view that the rich don’t always pay what they owe under the current system.
“The more powerful you are the more exemptions you will achieve every single time,” says Kelly. “And a sales tax is much easier to see and to control the increase in exemptions.”
The committee has made no decision on the legislation. Approval by the General Assembly would send the idea to a vote of the people.
It seems that the more people hear about FairTax the more people are willing to try FairTax. I know by living in Florida which has a FairTax principle system that it will work because it is transparent and you can understand your taxation. I always love the way Florida’s tax system works as I have lived in other states that does not have anything close to FairTax. I would hope more states not only look at FairTax but soon implement it. I feel as more states make this move then our national government would have to take notice and change their IRS s Income Taxation System to a FairTax System for the good of the people, our country, and our government. It is time to put FairTax to work.
Charlie Prochaska
Volunteer Community Coordinator Ga. Dist. 2 AFFT
