My other half and I took our two kids and went to a conservative association meeting. We came away with a little book for the kids called Founders' Fables that teach lessons based on the Constitution. It's very cute, and very well done.
We also came away with a deep-seated frustration that the presentations offered were so basic. Seriously, people--what the hell is wrong with you? How in the hell can anyone be unaware that there is no special trust fund for social security? Who doesn't know that the current generation of workers is paying for the current generation of retirees? Who doesn't know that the population of workers is shrinking while the population of retirees is growing?
Worst of all, who simply whines "I want the money I was promised, no matter that it's at the expense of my kids and grandkids?"
So. There's the irritation. Here's the alarm.
Most of my readers are aware that I'm in Missouri. We've had "Fair Tax" legislation floated about for a couple of years, now. It sank in committee. Simply couldn't garner enough support.
Instead of abandoning it for a flat income tax (sensible--which is why politicians won't go for it), they've re-named it the Missouri Jobs Act.
Okay, first off: the whole "Something failed to gain support from the sheep--I mean voters, so let's sneak it past them by renaming it" alarms me. It's related to the whole pride issue I wrote about a bit more than two years ago now.
The reasons a sales tax didn't gain traction are too numerous to mention. Let's talk about the effects we can expect to see in Missouri if they succeed in passing this renamed "Fair Tax."
People within about thirty minutes' drive of a state line are going to do the majority of their shopping--especially on big ticket items--out of state. This directly results in...
1. Fewer sales made in state. Fewer sales mean smaller profits, as well as smaller amounts collected in state taxes.
2a. Smaller profits mean overheads must be lowered. Overhead includes employee wages. That means that people are going to be fired. Which, in turn, means not only is less money going to be spent in-state, but more unemployment is going to have to be paid out.
2b. Items sitting on shelves will have their prices dropped in an effort to sell them, leading to an even smaller profit margin, even with fewer employees. Small business are still going to go out of business.
3. Shoppers fleeing the state to shop will eventually lead politicians to increase the tax rates, and possibly re-apply an income tax on top of the "fair tax."
4. Both businesses and income earners will begin to flee the state.
The Fair Tax is not a good idea, not in this economy. Many of us knew that, and that's why it was defeated under the proper name. Re-naming it and foisting it on us again demonstrates a level of deceptiveness and chutzpah that just frightens me. Tells me that my home state is determined to self-destruct.
48 minutes ago
And then Missouri will do what my state does: tack on a "surcharge" on the state income tax to "cover" the sales tax that the state did not make off of people who drove out of state/bought stuff online.
ReplyDeleteThe shopping in my town (except for a nice gift shop and a quilt shop) sucks rocks, so I kind of shrug and realize that I'm probably paying LESS in the surcharge than I'd save in sales tax if I didn't have to order nearly every book I read from Amazon or somewhere, and often drive to the next state over for better grocery shopping. (And no sales tax on groceries, which my state has)
Just out of curiosity, where (what state/town) do you shop for groceries?
ReplyDeleteOr, wait, does MO currently NOT have a state income tax? I've never lived anywhere that didn't.
ReplyDeleteOn the "I just want MINE," I think people are so used to the entitlement mentality that they can't think beyond their own noses. Or they don't care. I hear a lot of entitlement mentality (envy and greed, really) from students and from a few colleagues...they want all the perks of high wage-earners, but don't want to put in the effort most high wage-earners do. They are in favor of income redistribution because they DO want something for nothing, and don't understand that people who were high wage-earners will just wind up going Galt if they get taxed much more....
I go over into TX, HH. Marginally better selection and no state sales tax on groceries. Not all the time, but maybe once/twice a month. (That may end, though, if we get $5 a gallon gas...)
ReplyDeleteNo, we *do* have a state income tax. We don't currently have a state sales tax of 7% like what was proposed, and we don't have sales tax on groceries or prescriptions.
ReplyDeleteI don't want to be a high wage earner. I just want enough to cover the bills, stuff for the kids, and a bit of fun. If I wanted more than that, I'd hold my nose and go for the PhD. (I haven't because I don't want to be required to go to department meetings, serve on the faculty senate, etc., ad nauseum. I just want to teach my students, and I prefer to teach the basic core classes to non-majors. I just wish I could teach lit. without the stupid degree.)