COULD MISSOURI BE FIRST FAIR TAX STATE?

I'm a strong supporter of the use of sales and excise taxes in place of an income tax. It looks as though Missouri may be the first state in the nation to use a version of this known as the Fair Tax. I've posted a few excepts regarding this below.

The last excerpt raises an interesting question; should private schools be exempted from this tax? I would have to say yes, as long as public schools are supported with tax dollars. I say this for the same reason that I believe vouchers should be issued to taxpayers that choose to educate their children outside of the government system. You shouldn't have to pay twice for the same service others pay only once for. But I would take that further. I believe that all taxes collected to support education should be collected locally and spent locally. There is no reason for the state, much less the federal government to have any say in how my children are educated. The parents should be involved in the entire educational process, from hiring the teachers to establishing the curriculum. Keeping the money local would insure that.

There is an old one room school house just down the road from where I live. I drive by it all the time and think of how well that old system worked, bringing us Jefferson, Madison, Thoreau and George Washington Carver. Some were educated in the public schools, some at home and some learned on their own; but all were educated without teachers unions and government interference. The system worked then and it will work now.

Another objection raised to the fair tax in the same article is that the increase in taxes on goods sold will drive consumers across the border to shop in neighboring states. Missouri is "the" border state with eight states adjoining our border so this may be a valid observation. However, the law as it is written will only increase the current sales tax by .885 percent. I find it hard to believe that with this minor increase in cost many people will drive very far to save a couple bucks when gas is $3 per gallon. It just wouldn't make sense.

I like the Fair Tax but not as a stand alone piece of legislation. If the fair tax is going to be enacted it needs to include a Constitutional Amendment that makes it impossible to reinstate the income tax and all of the other taxes it replaces. From what I understand, the Missouri proposal does not include this. For this reason I cannot support it. I talked to someone at Missouri State Senator Griesheimer's office today and he confirmed my fears. Of course, he assured me that it would never happen. Right.

I'm glad that the discussion is happening and I hope that a Fair Tax is eventually passed in Missouri and in America. We just need to make sure it's done right. These damned politicians cannot be trusted. They'll find a way to screw us. Keep your eyes on 'em.

"SCS/SJR 29 - Upon voter approval, this proposed constitutional amendment replaces the state individual and corporate income tax, the corporate and bank franchise tax and state sales and use tax with a tax on the sale, use, or consumption of taxable property and services equal to five and eleven-one hundredths percent beginning January 1, 2012."
Missouri Senate

"The Missouri House gave final approval to a proposed constitutional amendment to abolish the state income tax and replace it with a FairTax system.

The proposal would raise the state sales tax from 4.225 percent to 5.11 percent and eliminate the 6 percent personal income tax and 6.25 percent corporate income tax on business earnings. Accompanying the sales tax rate hike would be a substantially broadened sales tax base that would include all purchases. Estate taxes would remain on the books.

The proposal would create the distribution of a monthly tax rebate check to cover the cost of any taxes incurred up to the federal poverty level, which is $26,000 for a family of four."
Fair Tax Blog

"Normally I’d be enthused about a tax simplification scheme, but a proposal being heard in the Missouri Senate this week is simply stupid. SJR 29 would seek to replace all corporate and individual income taxes with a state sales tax on all products and services sold in Missouri. The tax would apply not only to traditional retail items, but to services like private and parochial school tuition, apartment rentals and the purchase of new homes.

The Missouri bill is modeled on a national proposal called the “Fair Tax” which has more merit if applied on a national scale. But since Missouri is the most bordered state in the union, the effect of a Missouri-only Fair Tax would lead to a massive exodus of retail spending from the state, and in places like Kansas City, a massive exodus of citizens.

Beyond these depressive effects, there is a central injustice in the proposal – charging parents who sacrifice to send their children to private or parochial schools a sales tax on the tuition they pay. The tax is initially pegged at 5.11 percent, but could go significantly higher if it does not achieve the revenue collected under the current system."
Catholic Key