Fair Tax Proposal Passes House Committee on Party Line Vote

Categories: Politics
andrew koenig.jpg
Andrew Koenig
A resolution to replace Missouri's income tax with a so-called "fair tax" passed the House Tax Reform Committee yesterday. All eight Republicans on the committee voted in favor of the proposal; all four Democrats rejected the effort.

The proposal (HJR8) by state representative Andrew Koenig (R - West St. Louis County) would ask voters to eliminate the state income tax by 2019 and replace it with a higher state sales tax. The proposal is essentially identical to initiatives financier Rex Sinquefield is trying to place on the 2012 ballot that would do away with the income tax and replace it with a more expensive state sales taxes not to exceed 7 percent -- a figure that many believe is way too small to fund the state budget.

Curiously, Koenig's proposal would also prohibit sales tax on used cars but allow for such fees on new home construction. It would also give every Missouri taxpayer -- regardless of their income -- a $2,800 rebate each year to help offset the higher sales tax.

That's one of a few provisions of Koenig's "fair tax" proposal that even the chair of the tax committee questioned.

"We are not going to give millionaires rebate checks," Doug Funderburk (R - St. Charles County) told the Columbia Tribune yesterday. "That is not the only area where we need to make an adjustment to make it truly fair."

Which is precisely the point: Is there anything "fair" about the fair tax?

P.S. Koenig, a paint-store owner by profession, is also proposing bills this session that would make it easier for teachers to introduce religion into lessons on evolution; restrict certain abortion procedures and ease state restrictions on removing lead paint.

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8 comments
Ken
Ken

Unless you spend way more than you earn every year there is no way you will pay more in taxes under this proposal. The FairTax will bring many new jobs to Missouri. Please learn about the FairTax before you judge it. For an unbiased look at the federal version of the FairTax follow this link http://en.wikipedia.org/wiki/F... . Missouri's proposal is modeled after the federal version.

Henryptnm
Henryptnm

Andrew Koenig, a paint store owner, proposed a bill to ease state restrictions on removing lead paint? He is making money with this one. Must have lead in his brains.

Jfed
Jfed

This is a MEGA SALES TAX. Please let people know that fair has nothing to do with this ;)

BTW Andrew Koenig CREATE A JOB!

Guest
Guest

This makes no sense...let's raise sales tax, impacting the lowest income brackets the most, only to give everyone a $2,800 rebate check to "offset the higher sales tax"??? Who the hell comes up with this shiat? Cap the sales tax at 7%? It's already over 7% in areas like Washington Ave. and Brentwood! You need to repeat the 2nd grade...your math is terrible, Mr. Koenig.

Ashley
Ashley

How is it impacting the lowest income brackets the most?? Do only poor people buy stuff??

I think it's pretty safe to assume that the more money you have, the more money you spend. And I would rather be taxed on how much money I spend, rather than my productivity. And you get control over the amount of taxes you pay - want to pay less taxes, buy cheaper stuff!

Obviously there are kinks to be worked out, but at least you'll be able to go to work without worrying about a raise screwing you into a higher tax bracket, or that the more hours you work the more you give away in taxes...

anonymous
anonymous

well it makes sense when you remember that the republicans want poor people to die as soon as possible

STLNEWSMOD
STLNEWSMOD

You're wrong. The poor spend a disproportionate amount of their income on the type of bare necessities -- food, clothing, shelter -- that would all increase in price under a "Fair Tax." Sure, the rich spend money on those necessities, too, but at a far less percentage of their income. And, at the end of the day, what's to say that the rich will spend more with a Fair Tax? A more likely scenario is that they'd put their excess into savings or drive their Lexuses over to Illinois (or another bordering state) to make purchases that wouldn't carry Missouri's galling sales tax under the "Fair Tax" proposal.

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