One of the sponsors of this year’s tax bill vetoed by the governor says he’ll have a new proposal next year. But he’s not focused on making Missouri more competitive with Kansas.
Lee’s Summit Senator Will Kraus had the senate version of the bill cutting corporate and income taxes and raising sales taxes. The companion House bill is the one the Governor vetoed. The House refused to overturn the veto thanks to fifteen Republicans who changed their minds after hearing of problems.
Kraus thinks this year’s bill made a lot of progress and convinced the Governor that Republicans want to cut taxes. But he admits it’s going to be hard to write a bill that will get a majority of 197 legislators and a signature by the Governor in 2014.
Kraus says he does not believe Missouri is a low tax state, a claim he calls “a fallacy.” He says Oklahoma, Kansas, and Tennessee are among neighboring states with lower rates.
Although many supporters said this year’s bill was intended to make Missouri more competitive with Kansas, Kraus says Kansas isn’t the model he wants to follow. ‘We’re not going to go as aggressive as Kansas did,” he says.
Kraus says he wants to cut income and business taxes and increase the sales tax. He maintains the sales tax is not regressive, as opponents claim, because the state does not tax necessities such as food and prescription drugs.
The Tax Foundation’s 2013 Facts & Figures ranks states in several categories.
Tax Freedom Day, representing how long Americans must work into the year before earning enough money to pay all federal, state and local taxes for the year: It’s April 7 for Missourians, which ranks 42nd. Neighboring states: Arkansas and Nebraska are tied at 31; Illinois, 5, Iowa and Kentucky tied at 37; Kansas, 21; Oklahoma 39; Tennessee 50.
State and local tax burden per capita: Missouri ranks 30; Arkansas 33; Illinois 9; Iowa 26; Kansas 19; Kentucky 43; Nebraska 17; Oklahoma 40; Tennessee 49
State and local tax burden as percent of state income: Missouri 34; Arkansas 15; Iowa 24; Kansas 22; Kentucky 26; Nebraska 21; Oklahoma 36; Tennessee 48.
State business tax climate (overall index rate): Missouri 16; Arkansas 33; Illinois 29; Iowa 42; Kansas 26; Kentucky 24; Nebraska 31; Oklahoma 35; Tennessee 15. (The tax climate is computed through rankings for Corporate taxes (Missouri ranks 8th); Individual Income Taxes (Missouri is 24th); Sales taxes (Missouri is 27th); Unemplo9yment Insurance taxes (Missouri is 6th); Property taxes (Missouri is 6th). (A rank of 1 means the system is more favorable for business. A rank of 50 means it is less favorable).
State tax collections per capita: Missouri is 46th; Arkansas 16; Illinois 30; Iowa 24; Kansas 23; Kentucky 25; Nebraska 31; Oklahoma 37; Tennessee 42
State revenue per capita: Missouri is 43; Arkansas 16; Iowa 17; Kansas 30; Kentucky 26; Nebraska 32; Oklahoma 29; Tennessee 44.
State and local revenue per capita: Missouri 45; Arkansas 43; Illinois 31; Iowa 16; Kansas 24; Kentucky 39; Nebraska 21; Oklahoma 35; Tennessee 50.
Federal aid as percent of state general revenue: Missouri received the 5th most in FY 2011; Arkansas 26; Illinois 34; Iowa 15; Kansas 35; Kentucky 17; Nebraska 26; Oklahoma 14;Tennessee 6.
Individual income tax collections per capita: Missouri 30; Arkansas 27; Illinois 22; Iowa 17; Kansas 15; Kentucky 26; Neraska 16; Oklahoma 35; Tennessee 43.
State and local individual income tax collections per capita: Missouri is 27th; Arkansas 31; Illinois 33; Iowa 20; Kansas 19; Kentucky 17; Nebraska 23; Olahoma 34; Tennessee 44 (which does not tax wage income but does tax interest and dividend income).
State corporate income tax: Missouri 41; Arkansas 20; Illinois 17; Iowa 36; Kansas 34; Kentucky 24; Nebraska 35; Oklahoma 31; Tennessee 12.
State and local corporate income tax collections per capita: Missouri 43; Arkansas 16; Illinois 24; Iowa 38; Kansas 20; Kentucky 22; Nebraska 33; Oklahoma 42; Tennessee 11.
State sales tax rates: Missouri 37th; Arkansas, Iowa, Kentucky 16; Illinois 13; Kansas 12; Nebraska 26; Oklahoma 36; Tennessee 2.
State general sales tax collections: Missouri is 42nd; Arkansas 12; Illinois 38; Iowa 25; Kansas 17; Kentucky 31; Nebraska 22; Oklahoma 38k; Tennessee 9.
State and local sales tax collections, per capita: Missouri is 30th; Arkansas 8; Illinois 40; Iowa 22; Kansas 15; Kentucky 42; Nebraska k25; Oklahoma 18; Tennessee 5.
State gasoline tax rates: Missouri is 45th; Arkansas 35; Illinois 5; Iowa 33; Kansas 25; Kentucky 18; Nebraska 24; Oklahoma 46.
Cigarette taxes: Missouri 50; Arkansas 29; Illinoiis 15; Iowa 24; Kansas 35; Kentucky 39; Nebraska 37; Oklahoma 30; Tennessee 38.
Spirits excise taxes: Missouri 47; Arkansas 18; Illinois 14; Iowa 6; Kansas 43; Kentucky 17; Nebraska 34; Oklahoma 24; Tennessee 30.
Wine excise taxes: Missouri 37; Arkansas 9; Illinois 10; Iowa 4; Kansas 40, Kentucky 1; Nebraska 22; Oklahoma 26; Tennessee 13.
State beer excise taxes: Missouri is 49th; Arkansas 20; Illinois 27; Iowa 31; Kansas 32; Kentucky 7; Nebraska 21; Oklahoma 16; Tennessee 1.
State and local cell phone tax rates: Missouri 7; Arkansas 17; Illinois 5; Iowa 34; Kansas 10; Kentucky 24; Nebraska 1; Oklahoma 18; Tennessee 16.
State and local excise collections per capita: Missouri 35th; Arkansas 29; Illinois 6; Iowa 31; Kansas 39; Kentucky 15; Nebraska 32; Oklahoma 46; Tennessee 37.
State and local property tax collections per capita: Missouri 37th; Arkansas 49; Illinois 10; Iowa 23; Kansas 22; Kentucky 46; Nebraska 16; Oklahoma 47; Tennessee 42.
State debt per capita: Missouri is 24th; Arkansas 48; Illinois 11; Iowa 36; Kansas 39; Kentucky 26; Nebraska 49; Oklahoma 32; Tennessee 50.
State and local debt per capita: Missouri is 32nd; Arkansas 47; Illinois 8; Iowa 46; Kansas 11; Kentucky 14; Nebraska 29; Oklahoma 45; Tennessee 40.
Income per capita: Missouri is 30th; Arkansas 45th; Illinois 16; Iowa 23; Kansas 24; Kentucky 44; Nebraska 19; Oklahoma 32; Tennessee 35.
