Sales Tax Could Reach 10-13 Percent If Rex Sinquefield Has His Way

Categories: News, Politics
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Something like that.
Financier Rex Sinquefield, via his attorneys, filed nine initiative petitions Friday with the Secretary of State's Office calling for the elimination of the state income tax.

Before being placed on the November 2012 ballot, the petitions would require signatures from two-thirds of the Missouri's congressional districts equaling eight percent of the votes cast in the 2008 gubernatorial election. At this point it's unclear which of those nine Constitutional amendments Sinquefield would want on the ballot should he get the signatures, though they each call for basically the same thing.

The state would do away with income tax and replace it with a higher sales tax. The Missouri sales tax currently is 4.225 percent with cities and counties allowed to place additional municipal sales tax on top of the state levy.

Under Sinquefield's proposal, the state sales tax would be capped at seven percent. And given Missouri's budget shortfalls of late, it's likely it will rise to that number. So, how would that impact taxes in St. Louis? Take a look:

According to the Missouri Department of Revenue, St. Louis City has a general sales tax rate this year of 8.5 percent. If the state sales tax rose to seven percent, St. Louis shoppers would pay 11.275 percent on most purchases. And that's if you're not in a special taxing district. A purchase from a Washington Avenue boutique, where the tax rate is now 10.5 percent, would raise the tax to 13.275 percent.

The same is true in St. Louis County. The general sales tax rate there of 6.925 percent would rise to 9.7 percent. And in special tax districts, like Brentwood, would rise from 9.425 to 12.2 percent.
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5 comments
Champagne
Champagne

What this article does not discuss is that while sales taxes would increase, you would not be taxed on your income! That's more money in your pockets. You think drug dealers, people paid under the table, etc claim that income...nope! Those people pay nothing in taxes now, under the new plan, they would finally contribute to our state. Funny how the drug dealers make a ton of money, increase the drug addicts population, (many of whom either end up in jail, (that we pay for), addicts on welfare (we pay for), or turn to crime to earn $ for their drugs); but then none of them pay income taxes! Is that fair?! I would rather they be taxed on their rims and blingbling they choose to buy. I know they are not a large percentage of the population, just stating that that is not fair! Furthermore, why should I work hard for my money just to have it taken away? I would rather earn my money and then decide if I want to buy x, y, or z and pay the tax. This isn't a rich vs poor thing, or a Rex vs some-of-you thing, it is a smart thing and a fair thing. Families would get a prebate on important items one would get taxed on, therefore the lower income families won't actually be worse off, they will be the same, if not better. It will drive businesses here, list goes on and on. Think from all angles people!

nj
nj

Looks like taxes in the St. Louis area are way too high

J_Fed_STL
J_Fed_STL

Has Rex not studied on the chilling effects of Mega sales taxes on commerce?

Looks like Illinois will get some of its budget problem fixed by Missouri economic refugees... I can see tent cities in Walmart parking lots now. SMH

Mac
Mac

Considering how guys of Sinquefield's ilk love supply-side economics, shouldn't they consider how a higher sales tax would actually reduce consumption by low- and middle-income customers? (Not to mention that rich people wouldn't be affected by this hike as much!)

Way to whop St. Louis into the ground.

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