Missouri Income Tax Essay

3631 Words15 Pages
ESSAY December 18, 2009 Why a Sales Tax Is Better for Missouri Than an Income Tax By Rex Sinquefield and Jack Naudi Rex Sinquefield is president of the Show-Me Institute and a member of the institute’s board of directors. Jack Naudi is editor and senior writer for Slay and Associates. By most measures, Missouri is boosted jobs by only 6 percent. In their not a high-tax state. Its property and study, Laffer, Moore, and Williams corporate tax rates are among the provide one explanation for the state’s lowest in the country. It doesn’t have lagging performance: Missouri’s personal an inheritance tax. In a study for the income tax rates. The highest rate of American Legislative Exchange Council 7 percent, which includes the state’s (ALEC), economist Arthur Laffer, financial top marginal rate of 6 percent plus a journalist Stephen Moore, and Jonathan Show-Me State Warning Signs Williams, director of • National 10-year growth rate, 8.8 percent ALEC’s Tax and Fiscal Policy Task Force, rank • Missouri 10-year growth rate, 6 percent Missouri’s economic • 7-percent income tax (in St. Louis and outlook at 23rd among Kansas City), 32nd highest in nation states.1 • Kansas portion of Kansas City and Illinois But all isn’t well. portion of St. Louis growing faster than Missouri’s economic development and growth respective Missouri portions rates are chronically Sources: Arthur Laffer and Stephen Moore, “Rich below average. During States, Poor States,” American Legislative Economic the past 10 years, Council, 2009; and: Richard Vedder and Stephen employment has grown Moore, “Repealing the State Income Tax by 2020,” 8.8 percent nationally, Show-Me Institute, Dec. 11, 2006. while Missouri has Taxes matter because they affect behavior, often in detrimental ways. Studies have found that older people flock to states without an inheritance tax, and that high capital gains

More about Missouri Income Tax Essay

Open Document