NO to Tax Cuts that Favor the Wealthy and Defund Missouri!

The proposed constitutional amendments and legislation [SJR24 (Schroer), SJR42 (Carter), SJR31 (Brown), SJR20 (Trent), SJR32 (Hudson), SJR48 (Schnelting), SB151 (Brown), SB228 (Carter), SB138 (Trent), SB161 (Hudson), SB220 (Schroer), HB100 (Davidson), HB1112 (Cupps), HB798 (Warwick)] threaten Missouri’s fiscal stability, undermine equitable taxation, and jeopardize essential public services. While proponents frame these measures as “tax reform,” they disproportionately benefit high-income earners and corporations while shifting the burden to working families through regressive sales taxes and rigid spending constraints. 1. Spending Limits Jeopardize Public Services. The population-based spending caps in these bills fail to account for inflation, emergencies, or evolving needs. For example, if Missouri’s population declines—a trend in many rural counties—the state would be forced to slash budgets even as costs for healthcare, education, and infrastructure rise. This violates the state’s constitutional obligation to provide adequate public services. During crises like pandemics or natural disasters, these rigid limits could paralyze the state’s ability to respond, endangering lives and economic recovery. 2. Automatic Tax Cuts Favor the Wealthy and Defund Missouri. The “Tax Reform Fund” mechanism mandates automatic income tax reductions—prioritizing tax elimination over critical investments. This violates principles of fiscal responsibility and equity, as low- and middle-income families rely more heavily on these services. Notably, similar efforts to tie tax cuts to arbitrary revenue thresholds have destabilized budgets in states like Kansas, leading to severe cuts to public schools and healthcare. 3. Regressive Sales Tax Shifts Burden to Working Families. By capping statutory sales taxes at 3.775% and eliminating Article X, Section 26—which prohibits new sales taxes on untaxed services—these bills pave the way for broadening sales taxes on essentials like childcare or utilities. Sales taxes are inherently regressive, consuming a larger share of income from low-wage earners. 4. Eliminating Income Tax Deductions Harms Middle-Class Families. SB 151, SB 228, and related bills repeal federal income tax deductions, effectively raising taxes on middle-class households. For example, a family paying $5,000 in federal taxes would lose a $1,500 deduction under current law, increasing their state tax liability by approximately $60 annually—a significant burden for those already struggling with rising costs. These bills prioritize ideological tax cuts over the well-being of Missourians. They risk creating perpetual budget shortfalls, widening inequality, and eroding public trust in governance. I urge the General Assembly to reject these proposals and pursue balanced, equitable tax policies that strengthen—not starve—our communities.