AARP Says Amendment 5 Disproportionately Harms Seniors

The AARP has come out against Amendment 5, which it says would disproportionately harm senior citizens, especially adults on fixed incomes.

Amendment 5 would eliminate the Missouri Income Tax and replace it with a state sales tax. The measure would give legislators a blank check for the next five years to raise sales taxes, expand them to services such as auto repairs, or both.

The AARP notes that most retirees already receive significant tax relief. Social Security benefits are already exempt from the Missouri Income tax, and most public pension income is up to the Social Security maximum.

If the sales tax increases do not meet the shortfall from eliminating the state income tax, the AARP says it could result in cuts to home and community based services, public transportation, long-term care support, and independent living programs.

Election Day is August 4th.

 

Amendment 5 Could Cost King City $500,000

The Missouri Budget Project published an estimate showing that the King City School District stands to lose $500,493 in annual funding should Amendment 5 pass. This is in addition to funding that could be lost if Hold Harmless is done away with. This represents around 7% of King City’s annual budget for the year. Amendment 5 would abolish the State Income Tax and authorize the Legislature to raise sales taxes to offset the losses. The Legislature has not stated how, or if, they would replace these lost revenues.

 

Editorial -- No on Amendment 5

Amendment 5 would eliminate the Missouri Income Tax and give politicians a blank check to replace it with sales taxes. The problem is, we don’t trust the politicians to raise our sales taxes given the disturbing news release we recently received from the Missouri State Auditor’s Office stating that the state is headed off a $2 billion fiscal cliff. The politicians in Jefferson City got us into this mess. So why should we trust them with raising our sales taxes over the next five years when they are leading us off this cliff to begin with?

Amendment 5 would upend 40 years of voter-approved measures that have kept our taxes down. Among them:

—The Hancock Amendment, which limits the amount of revenues that the state can bring in and which states that major tax increases have to go to a vote of the people.

—The 2010 ban on taxes on real estate transfers. This was a dealbreaker for many people wanting to live and work in this state, and amounted to double-dipping by the state. If Amendment 5 passes, it would bring it back.

—The 2016 ban on taxing services. In 2016, Missouri voters passed laws banning politicians from taxing services like doctor visits, car repairs, daycare, haircuts, and more. If you think that the pain at the pump is bad, wait till you see the sticker shock when your car breaks down or you get sick or you want to do the responsible thing and work, only to be unable to afford childcare.

None of us like to pay taxes. But we’re not against all taxes. We’re against politicians having a blank check to make things even worse when Washington and Jefferson City are bought and paid for by the millionaires, billionaires, and now trillionaires given that Elon Musk is now the world’s first trillionaire.

If we have to pay more taxes to escape the $2 billion fiscal cliff that the Missouri State Auditor says we’re in, then let’s put a tax increase to a vote for the people with specific earmarks, such as school funding and roads and bridges that we can all agree need to be funded. If it fails, then come up with a list of items that will be cut and services that will be terminated. No more blank checks for politicians.

 

Four Amendments on August 4th Ballot

There will be four amendments on the Missouri Ballot for August 4th.

Amendment 1 will renew the Parks & Soil Sales Tax. It is not a tax increase; it is a renewal of an existing sales tax that has funded state parks, historic sites, and soil conservation programs since 1984.

Amendment 2 requires charter counties to elect their assessor instead of allowing charter counties to appoint their own. This measure affects St. Louis County, Jackson County, St. Charles County, Jefferson County, and Clay County. It does not affect any local counties, all of which already elect their assessor.

Amendment 4 raises the bar to pass constitutional amendments in Missouri. Such referendums must pass a majority of congressional districts as well as pass by a majority votes.

Amendment 5 phases out the income tax in Missouri and gives lawmakers the unlimited power to raise sales taxes to replace it with as well as tax new goods and services that had not been taxed before.

The measure to repeal the right to reproductive healthcare in Missouri will be on the November ballot.