Saturday, March 2, 2013

 A sales tax increase for transportation heads to the House

(MDN News) -- The House Transportation Committee unanimously approved Tuesday, Feb. 26, a ballot issue for a sales tax increase for transportation.

Under the measure, the sales tax would be raised one penny per dollar for 10 years. Legislative staff report estimates the tax increase could generate up to $800 million per year for transportation projects.

If it clears the legislature, it would require statewide voter approval to take effect.

"Republicans have a lot of rural legislators, that's a great concern of them, that their rural roads are upgraded and maintained and that's what this bill does," said the bill's sponsor, Rep. Dave Hinson, R-St. Clair.

While nobody on the committee voted against the bill, the director of a leading welfare-advocacy group expressed opposition.

"Regressive means that those who have the least amount of money bear a higher burden in terms of how much taxes are being paid, as opposed to progressive which means that those of us who make more pay a higher percentage of our incomes in taxes," said Jeanette Oxford, director of the Missouri Association for Social Welfare.

Oxford said she supported increasing funding for transportation, but through other revenue increases rather than a sales tax increase.

The proposed constitutional amendment now goes to the full House.

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