If passed, SJR42 would lead to critical amendments to Article X of the Missouri Constitution, instituting new spending limits on the general assembly. The bill proposes that total state expenditures cannot exceed established revenue limits, thus enforcing fiscal discipline. This modification is expected to influence the budgeting process and limit state government spending, ensuring that it aligns with the actual revenues collected. Additionally, the resolution seeks to impose a cap on the statewide sales tax rate while introducing a specific sales tax for lobbying services, effectively expanding the tax base in certain areas.
Summary
SJR42, a joint resolution introduced by Senator Carter, proposes significant changes to Missouri's taxation framework by amending the state's constitution. The bill aims to gradually reduce and eventually eliminate personal and corporate income taxes through a 'Tax Reform Fund.' This fund is designed to capture surplus revenues exceeding one million dollars each fiscal year, which would be used to trigger a reduction in personal income tax rates. Once the personal income tax is eliminated, the focus would shift to phasing out the corporate income tax as well. The overarching goal is to create a more favorable tax environment in Missouri, potentially attracting businesses and fostering economic growth.
Contention
The introduction of SJR42 is likely to provoke significant debate among legislators and constituents. Proponents argue that the elimination of income taxes could lead to increased disposable income for residents and enhance the competitive positioning of Missouri in attracting new businesses. Conversely, opponents may express concern over potential long-term impacts on state funding for essential services, such as education and infrastructure, which rely heavily on income tax revenues. The discussions around SJR42 will likely hinge on the balance between tax relief for individuals and the need to maintain adequate funding for public services and economic stability within the state.
To provide appropriations from the General Fund for the expenses of the Executive, Legislative and Judicial Departments of the Commonwealth, the public debt and the public schools for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide appropriations from special funds and accounts to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide for the appropriation of Federal funds to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; and to provide for the additional appropriation of Federal and State funds to the Executive and Legislative Departments for the fiscal year July 1, 2022, to June 30, 2023, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2022.