Dennis Morrissey, Jefferson City
Dear Editor,
Gov. Parsons' proposed tax cut plan for Missouri is unfair, short-sighted and needs to be modified.
Gov. Parson vetoed tax legislation that was better than his current proposal. His proposal for the special legislative session gives the rich an unnecessary tax break. His proposal eliminates one lower tax bracket and increases the standard deduction minimally.
The governor's proposal also immediately reduces the upper tax bracket from 5.3 percent to 4.8 percent. This means the little guy gets crumbs and the rich get a windfall. The governor's proposal wreaks of trying to buy political favor and votes from the rich.
According to a Missouri Budget Project, 20 percent of Missourians with the lowest income (taxpayers making less than $22,000 annually) could see an $11 tax reduction under the governor's proposed plan. The top 1 percent of income earners (taxpayers making $552,000 annually) could see a $6,024 tax break. There are better alternatives that would allow all taxpayers to receive the same tax break.
Giving all taxpayers a larger increase in the standard deduction would be more equitable. Another option would be to eliminate all tax brackets below 5.3 percent which would give all taxpayers the same tax break. Either of these changes would give every taxpayer the same tax break and result in more of an incentive for low-income persons to work and receive a sustainable level of income. This would also lessen the drain on state resources from assistance payments. Either option would be less expensive and allow excess revenues to be placed in the Missouri "Rainy Day" Fund.
Lastly, it is questionable whether the governor's proposal is fiscally sound. Even though general revenues have increased, giving large tax cuts now could have a see-saw effect whereby taxes would likely have to be increased when revenue collections are not as positive. Hopefully our legislators will realize the problems with the governor's proposal and address this in their special session so that a reasonable plan can be adopted to benefit all taxpayers.