New-year legislative proposal would do away with state income tax

Dec 27, 2011

Among the many ideas being floated in Jefferson City for next year is a proposal to do away with the state’s income tax.  State Senator Chuck Purgason is sponsoring the legislation.

By: Maria Altman/St. Louis Public Radio

State Senator Chuck Purgason wants to see Missouri get rid of its income tax and rely solely on sales and use taxes. The Republican from Caulfied says that would lure more businesses to the state and be a more fair way of taxing residents.

But Missouri Budget Project executive director Amy Blouin says the proposal would sharply increase the sales tax hitting low and middle income residents : “The state sales tax rate would be 7%, the state and local would be 10% and that could be applied to everything from food and groceries to auto repairs to house repairs and even health care services.”

Purgason counters that the wealthy buy more and would pay more: “I never have understood a system that the harder you work, the more you earn, the more you get taxed. That’s almost a disincentive to go out and try to grow a company and be productive.”

The legislative session begins January 4th.