Voters may have chance to eliminate state income tax

Missouri’s income tax could become a thing of the past under the terms of a constitutional amendment that is working its way through the General Assembly in Jefferson City.
Earlier this week the Missouri House gave preliminary approval to a constitutional amendment replacing the state income tax with a higher sales tax. Under the proposal Missouri’s sales tax on most items would increase to 5.11 percent from its current rate of 4.225 percent. Individual and corporate income taxes would be abolished.
Proponents say a sales tax is a “fair tax” because it would capture revenue from those who may not pay income taxes. Opponents note that because the sales tax would also apply to groceries and prescription drugs, that currently are not taxed, it would be especially hard on middle-class and elderly Missourians.
Reservations were expressed locally about the proposal.
“I think it has its pros and cons. I would want to read the proposal in depth and be able to ask a few more questions and find out before they’re quick to react and put this into play,” said Angel Zerbonia, city clerk in Hannibal. “I think it would have more of a detrimental impact on those that are on more of a fixed income. I think the impact is going to be on the wrong people.”
Speaking as a private citizen, Jeff LaGarce, Hannibal city manager, also was skeptical.
“It seems you’re putting a very onerous burden on one particular point mode of taxation,” he said. “This may be the greatest thing for Missouri for all I know, but my personal feeling is I think this could create loopholes.”
A second affirmative House vote would send the measure to the Senate. Passage by both chambers would put the question on a 2010 statewide ballot and, if approved by voters, it would take effect in the 2012 tax year.

(The Associated Press contributed to this story.)