A new letter to Auditor Tom Schweich from former Governor John Ashcroft's Commissioner of Administration, Jim Moody, slams Rex Sinquefield's initiative petitions to hike the state's sales tax as "fiscally untenable" proposals that would bankrupt the state or Missouri's middle and working classes.
The Star and Tribune have stories on Moody's letter, sent on behalf of Missourians Against Higher Sales Taxes, which asks the Auditor to produce sound fiscal notes on the petitions that accurately predict the devastating impact they'd have if enacted.
From the letter:
We believe that a sound analysis by your office will reach the conclusion that we have reached—that is, all of these petitions are fiscally untenable. They will either bankrupt the state, or in the alternative, bankrupt the poor and the working lower and middle income classes...
As we will explain in our analysis below, proponents of the increased consumption tax have been using calculations that are simply wrong on their face. They have all calculated a rate that is too low in determining the real consumption tax rate, primarily because they have overstated the taxable base subject to the increased consumption tax...
The proponents would leave you to believe that you can have a reduced tax base, a relatively low and capped tax rate, and a prebate fully funded. That notion, however, is a pure fantasy, and a basic “bait and switch” tactic. The “bait and switch” would attempt to make you believe that these three components are not absolutely inter-related. The 7% cap is a gimmick to get around the significant problems with these initiative petitions.
Sinquefield is obviously a major GOP donor -- and provided financial backing for Schweich in his 2010 campaign - and the Auditor's actions on these petitions will provide an early indication of whether he can be the independent and honest official he promised to be (when he wasn't promising to be a hyper-partisan auditor, of course).
Moody's full letter, as made public by the Star, is embedded below the jump.