Contrary to absurd claims that Rex Sinquefield's tax fantasies will make it so "you and me and everybody can have more money to spend, now and forever," the Everything Tax, supported by Peter Kinder and Steve Tilley, is "a loser for nearly everyone."
They want to eliminate the tax source which brings in 65 percent of Missouri’s revenue, claiming unconvincingly that getting rid of the individual income tax will cause new businesses to flock to Missouri and produce enough new revenues to close a $3 billion budget gap.
Under their plan, consumers would pay a 5.5 percent sales tax on food, which currently is exempt. Many services would be newly subjected to a sales tax, which in most cases would be capped at 10 percent, with the state entitled to 7 percent of that amount. The state would receive more than half of the tax for its general fund and dedicated purposes. Over time, some local governments could be forced to reduce their existing sales taxes.
Instead of inhabiting a low-tax utopia, most Missourians would experience a higher cost of living and decimated state services.
Sinquefield’s plan is a loser for nearly everyone. Let’s hope he can be convinced to spare his fellow citizens from a costly referendum on his personal fancy.