Proposes an amendment to the Constitution of Missouri relating to limits on certain tax and revenue decreases
Impact
The proposed measure seeks to ensure that state fiscal policies prioritize transparency and public involvement by including citizens in the decision-making process regarding tax and revenue changes. If HJR118 is enacted, it would fundamentally alter how Missouri manages its budgetary matters. State legislators would be restricted from implementing any substantial tax or fee reductions without first consulting the electorate, potentially leading to greater public scrutiny over fiscal policies.
Summary
HJR118 proposes an amendment to the Constitution of Missouri that aims to establish strict limitations on the state's ability to decrease taxes or fees. Specifically, the bill mandates that any tax reduction, fee decrease, monetary grants, or special financial treatments for corporations that would result in an annual revenue loss greater than $25 million (adjusted annually for inflation) must receive voter approval. This legislative change is designed to enhance fiscal responsibility by requiring public consent before significant revenue decisions are made.
Contention
While proponents of HJR118 argue that it empowers voters and protects state revenues from arbitrary cuts, there are concerns about its implications for fiscal policy flexibility. Critics may argue that imposing such requirements could hinder the state's ability to respond quickly to economic downturns or emergencies by limiting immediate fiscal interventions. Furthermore, opponents might express apprehension that relying on voter approval for every significant tax-related decision could lead to voter fatigue or misinformation affecting public votes.
Additional_points
Another notable aspect of HJR118 is the provision allowing the state to bypass these limitations in case of a declared emergency, contingent upon a two-thirds vote from the general assembly. This clause attempts to balance the need for fiscal restraint with the necessity of responsive governance. However, the definition of 'emergency' could be a point of contention, necessitating careful consideration to prevent misuse.