Proposes a constitutional amendment to impose an appropriation spending limitation and to establish the "Tax Reform Fund" to be used to fund budgetary shortfalls, subject to an appropriation limitation, implement sales tax changes, and allow for certain taxation changes based on revenue triggers, by general law
Impact
The proposed changes through HJR1 would significantly alter Missouri's approach to taxation and state budgeting. By capping personal income tax and reallocating excess revenues into a dedicated fund for tax reform, the bill is designed to streamline the taxation system and provide tax relief to residents over time. Proponents of the bill argue that these adjustments would not only aid in stabilizing the state's finances but also promote economic growth by making Missouri a more attractive place to live and work due to lower taxes. Furthermore, implementing a cap on the sales tax could provide residents with more predictable tax obligations.
Summary
HJR1 proposes a constitutional amendment aimed at restructuring tax policies in Missouri. This amendment seeks to create a 'Tax Reform Fund' that would utilize excess revenue to gradually reduce and potentially eliminate personal income taxes. Additionally, the bill imposes an annual spending limit on the Missouri General Assembly, which would restrict state governmental expenses to established revenue limits plus any surplus. The amendment also proposes a cap on the state's sales tax and introduces a sales tax specifically on lobbying services.
Contention
Despite its potential benefits, HJR1 has faced criticism and concerns from multiple stakeholders. Opponents argue that capping the sales tax and limiting government spending could lead to fiscal challenges in the future, especially if the state encounters unforeseen budgetary shortfalls. Critics fear that restricting the General Assembly's appropriation capabilities may hinder the state's ability to respond effectively to economic crises and essential funding needs. Additionally, the introduction of a sales tax on lobbying services has raised questions about the fairness and transparency of taxation in Missouri.
Proposes a constitutional amendment to impose an appropriation spending limitation and to establish the "Tax Reform Fund" to be used to fund budgetary shortfalls, subject to an appropriation limitation, and allows for certain taxation changes based on revenue triggers, by general law
Proposes a constitutional amendment to impose an appropriation spending limitation and to establish the "Tax Reform Fund" to be used to fund budgetary shortfalls, subject to an appropriation limitation, and allows for certain taxation changes based on revenue triggers, by general law
Authorizes the Tax Reform Fund for certain revenue surpluses and implements personal income tax and sales and use tax triggers based on certain funding and revenue surpluses being met