Working with her nursing home residents in Kansas City, every day LaTonya Sullivan sees the struggles some face paying their bills.
Takeaways
- Many low-income workers already do not pay state income taxes, so any increases to the state sales tax rate or base would increase their tax burden. It is estimated that 80% of Missourians will see their tax burden increase under the plan.
- Budgets are already tight. Low-income workers are living on razor-thin margins, where an increase in expenses could mean deciding whether or not to pay rent. For some, it might mean losing their homes.
- There are no fallbacks. Should the proposal end up causing the state to lose more revenue than predicted, as was the case with the capital gains tax elimination last year, it could lead to cuts of state-run services that low-income workers depend on as the state faces tough budget years ahead.
Now, with a proposal to eliminate the state income tax and offset it with increased sales taxes heading to the Missouri ballot, Sullivan worries those struggles will only increase for working people like her.
“It’s emotional for me, because I see it every day,” Sullivan said. “I see it at work. I see it at home. I’m constantly around it.”
The proposal, which awaits Gov. Mike Kehoe’s decision on whether it will appear on the August or November ballot, would direct the Missouri General Assembly to set revenue baselines and triggers for reductions in the income tax rate…