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The economics of eliminating Missouri’s income tax – Beacon: Missouri

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The economics of eliminating Missouri’s income tax – Beacon: Missouri


Take two steps into the Missouri Statehouse this session and the words “income tax” will inevitably come up. 

Takeaways
  1. Proposed legislation would reduce the state’s top tax rate by 0.01% for every $20 million in revenue that exceeds the previous year’s collection, adjusted annually for inflation. In exchange, the General Assembly would be granted broad authority to change sales taxes without additional voter approval.
  2. Although Missouri has remained solidly middle of the pack for economic and population growth, supporters say eliminating income tax would help make Missouri more attractive to businesses. Eight other states without income taxes consistently rank higher for economic growth.
  3. But, Missouri’s dependence on income tax revenue is much greater than other states’, making up roughly 65% of state revenue. Missouri also lacks the natural resources or tourism that other states have, meaning sales taxes would likely have to be increased to help offset the lost dollars.

That’s because the General Assembly is debating House Joint Resolutions 173 & 174. The resolutions propose gradually eliminating the state’s income tax. It would also authorize the legislature to offset any losses by expanding the sales tax base or rate.

The proposal states that if net revenue collections exceed fiscal year 2027’s collections by $20 million or more, it would trigger a one-hundredth of a percentage point reduction in the state’s top tax rate. Those targets would be adjusted for inflation. Once the rate dips below 1.4%, the rate is instead zero.

The state’s top tax rate currently is 4.7% on any income that exceeds $9,191. 

The legislation’s target date to get rid of the income tax is 2032. Once it’s eliminated, the state would not be allowed to reinstate an income tax in the future.

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In exchange, the legislature would have broad authority for the next five years to increase sales tax rates or expand the base of goods and services that could be taxed without approval from voters.

Currently, the legislature is limited by the Hancock Amendment to $144.4 million in what new fees or taxes could generate without needing voter approval. Due to a 2016 amendment, it also cannot expand the sales tax base beyond what was already subject to it before 2015.

If it passes both chambers, voters will still need to approve the measure at the ballot in November. 

The legislation has drawn stakeholders from across the state. During a Senate committee public hearing on April 1, so many people showed up to testify on the legislation, for and against, that they spilled into the hallway where they waited to be called in.

Starkly opposing narratives were heard.

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On one hand, advocates say eliminating the tax will encourage economic growth, increased savings and more government transparency. On the other hand, opponents say it would add  the burden of an increased sales tax on people least able to afford it.

The outcome is far from straightforward. 

Sarah Narkiewicz, director of the Low Income Taxpayer Clinic at Washington University in St. Louis, said that while there is some merit to the plan, change inevitably brings some downsides.

“The idea is that by reducing the income tax, you’re going to bring in industry, you’re going to increase jobs, people are going to have more economic spending power,” Narkiewicz said. “The downside in this case is that in order to eliminate the revenue from the state income tax, which is about 60% to 70% of the state’s general revenue budget, we have to come up with that money from somewhere else, or we have to drastically cut services, or both.”

A boost to economic growth

Many of the arguments for the proposal center around boosting economic growth and making sure Missouri stays competitive.

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Advocates have pointed to the success of the nine states without an income tax as reasons for Missouri to consider this path and as models on how to do so responsibly. Those states are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Washington does impose capital gains taxes on those that earn more than $1 million a year.

In 2024, Missouri ranked 36th in the nation for state gross domestic product per capita, according to Statista. All nine states without an income tax ranked higher.

Since 2010, Missouri’s net population has increased by 0.31%, Pew research found. The states without an income tax had a net population increase greater than Missouri’s.

Proponents are confident that the proposed plan will not throw off the state’s budget because it uses revenue triggers to implement income tax cuts. 

“That phased approach has worked very well in preventing shortfalls through the cuts,” said state Sen. Curtis Trent, a Republican representing Barton, Dade, Greene and Webster counties who is the bill handler on the Senate side.

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“Of course, this is a replacement policy, and so there are guardrails we think are sufficient to make sure there’s no drop in the budget, because that’s certainly not the intent.”

The bill only authorizes the legislature to make changes to the sales tax and does not directly affect it yet. 

Sen. Ben Brown, a Republican representing Franklin, Gasconade, Osage and Warren counties, said that if the proposals were the only pieces of legislation to pass, the rate would likely continue to tick down on its own with current revenue growth.

The added language allowing for sales tax adjustments could helps speed up the income tax elimination process and simplify the tax code by reconsidering exemptions, said Elias Tsapelas, the director of state budget and fiscal policy at the libertarian Show-Me Institute. The institute testified in favor of the legislation.

“If the legislature wants to do it faster, modernizing the state’s sales tax base is going to be something that speeds it up,” Tsapelas said.

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There are multiple ways in which that can be done.

One way is by expanding the base of what can be taxed. One example would be taxing subscriptions on digital services since their prevalence in consumer spending has grown significantly.

“For instance, I’m looking at a document I have up in Microsoft Word,” Tsapelas said. “Ten years ago, we might have went and purchased a disc of Microsoft Word, and I would have paid the sales tax on it. Now, I get it from Microsoft, and it’s technically software as a service, so I don’t pay sales tax on it.”

Another option is raising the sales tax rate on the goods and services already being taxed. It is estimated that the state sales tax rate would have to be raised to somewhere between 12% and 15% if the base is not expanded at all. 

Legislators have said that is unlikely that will be the case. Brown told The Beacon he didn’t believe the assumption that the sales tax rate would increase significantly would come true. Trent, in an interview with Missouri Independent, said the highest rate voters would accept is about 6%.

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The end result would likely be a mix of rate increases and an expansion of the base.

Brown acknowledged that it would be up to future legislators to withstand requests for industry-specific exemptions in order for any sales tax changes to succeed as intended.

“Financial situations can vary from year to year, and that’s something that’s going to take a great amount of agreement and compromise on. … And I think the only way it happens is if the legislature as a whole can stay very disciplined as to keep that sales tax rate either below where it is now or somewhere relatively close to where it is now.”

‘An odd duck’

Missouri is in a unique position compared to other states that have eliminated their income tax.

“I don’t think there are any states that have completely gone from a system where income tax is the primary source of revenue to eliminating the income tax, at least not in a very, very long time,” Narkiewicz said. “Tennessee just eliminated it, but it was a very small percentage. It wasn’t a true income tax. We’re kind of in a brave new world, and it’ll be interesting.”

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Tennessee has often been referenced as the state most similar to Missouri in terms of economic makeup.

Income tax made up about 2% of Tennessee’s revenue when it began eliminating its income tax in 2016, largely because it had never taxed earned income and instead only taxed interest and dividends.

In comparison, income tax makes up roughly 65% of Missouri’s state revenue. The state has already forecast lower revenue for future fiscal years while debating the budget.

States that have eliminated the state income tax also have other industries like natural resources, gambling and tourism that make up the bulk of revenue. 

“The argument … is that if Missouri cuts this income tax, we’ll be just like these other states and be economically successful,” Narkiewicz said. “We’re a little bit of an odd duck there. We don’t have a lot of the advantages that these other states have.”

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Eliminating state income tax typically comes with tradeoffs in other areas, Narkiewicz said, with one being in the form of higher sales taxes. Tennessee has the second-highest combined state and local sales tax rate in the country, according to the Tax Foundation. Missouri ranks 12th.

Wesley Tharpe, the senior adviser for state tax policy at the Center on Budget and Policy Priorities, said forgoing the income tax revenue also means less money for things like education, affordable housing and transportation.

Those factors can come back to bite states when a business considers the totality of what a state has to offer before moving there.

“The track record of other states is that both individuals and businesses and investors are not looking narrowly at one specific attribute when they’re thinking about where to live or to work or to start a business,” Tharpe said. “They’re going to be looking at the whole package of what a state offers. Taxes are certainly going to be one thing that any rational person or a company takes into consideration, but they’re also going to be thinking about the local quality of life.”

Some business lobbying groups have stepped forward in opposition, saying Missouri is already an attractive place to do business and the proposal doesn’t protect businesses from paying sales taxes on materials used for goods that would also be subject to sales tax.

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Missouri is not the only state contemplating income tax eliminations either, meaning it could become a race to the bottom with other states.

“If every state cuts down their income tax, then what does Missouri have to offer that is going to make it stand out in terms of the actual cost for eliminating state income tax and potentially expanding the sales tax base?” Narkiewicz said.

The proposal still faces several key votes and the ballot box before the impacts materialize. It will be heard next on Monday by the Senate Committee for Fiscal Oversight, where it will need approval before heading to the full Senate floor.

Type of Story: Explainer

Provides context or background, definition and detail on a specific topic.

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Kansas City, Missouri, police investigating Monday evening homicide near 12th, Askew

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Kansas City, Missouri, police investigating Monday evening homicide near 12th, Askew


KANSAS CITY, Mo. — The Kansas City, Missouri, Police Department is investigating a homicide that occurred Monday evening.

The incident happened near 12th Street and Askew Avenue just after 6:40 p.m.

No word on what led to the violence.

This is a developing story. Check back for updates.

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If you have any information about a crime, you may contact your local police department directly. But if you want or need to remain anonymous, you should contact the Greater Kansas City Crime Stoppers Tips Hotline by calling 816-474-TIPS (8477), submitting the tip online or through the free mobile app at P3Tips.com. Depending on your tip, Crime Stoppers could offer you a cash reward.

Annual homicide details and data for the Kansas City area are available through the KSHB 41 News Homicide Tracker, which was launched in 2015. Read the KSHB 41 News Mug Shot Policy.





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Multiple power outages reported across mid-Missouri

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Multiple power outages reported across mid-Missouri


Many mid-Missouri residents are left without power due to storms continuing across the area. 

Over 1,100 Cole County residents are left without power as of 6:00 a.m., according to the Missouri Power Outage website.

444 residents in Osage County, along with 171 residents in Boone County are also left without power, according to the website. 

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Over 14,000 customers in the state of Missouri are without power, according to the website. 

A First Alert weather day has been issued on KOMU 8’s website until 9 a.m.

Flash flooding, heavy rain, damaging wind gusts, and small hail are possible across mid-Missouri, according to KOMU 8’s weather team.



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11 Best Golf Courses in Missouri

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11 Best Golf Courses in Missouri


Big Cedar Lodge, the Bass Pro Shops resort above Table Rock Lake, has assembled the densest collection of big-name golf design in the Midwest, with courses by Tiger Woods, Tom Fazio, Bill Coore and Ben Crenshaw, and Jack Nicklaus all within a few minutes of one another. That Ozarks cluster anchors one of Missouri’s three golf regions. St. Louis brings a 1914 Charles Blair Macdonald layout and two Robert Trent Jones Sr. courses with deep championship history, while the Lake of the Ozarks splits the middle of the state with Nicklaus and Weiskopf designs on opposite shores. The eleven courses below each cover architect, yardage, green-fee range, and access notes for visiting golfers.

Ozarks National

Built on the bones of a defunct course, Ozarks National is the work of Bill Coore and Ben Crenshaw, who widened the fairways and routed new holes across the limestone ridges south of Branson. The par-71 layout opened on May 1, 2019, stretches to 7,036 yards with a 73.9 rating, and includes a 400-foot wooden bridge that carries golfers 60 feet above a creek between the 13th tee and fairway. It was named a Best New Public Course for 2019 and has held a place among the country’s top 100 public courses every year since. Holes ride along ridgetops and out onto fingers of land that fall into wooded ravines, and the tilt of those holes puts a premium on shaping shots off the tee.

Green fees run roughly $190 to $275 by season, and play is tied to a Big Cedar Lodge reservation. The resort covers more than 4,600 acres above Table Rock Lake, with lodging that spans lodge rooms, cottages, the four-bedroom Buffalo Ridge cottages added in 2021, and the remodeled Angler’s Lodge near the water. Six pools, marinas, the Cedar Creek Spa, and horseback riding fill out the grounds. Springfield-Branson National Airport is about 45 minutes north, and the practice facility beside the clubhouse also serves Payne’s Valley and the resort’s par-3 courses. Conditions are cleanest from April through October.

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Payne’s Valley

Payne’s Valley was the first public-access course Tiger Woods designed through his TGR Design firm, and it carries the name of Springfield-born major champion Payne Stewart. The par-72 layout runs 7,170 yards over wide fairways and large greens, and it ends on a bonus 19th hole designed by Johnny Morris, an island green ringed by streams and waterfalls spilling down exposed rock. Its grand opening in September 2020 was marked by the Payne’s Valley Cup, an exhibition pairing Woods and Justin Thomas against Rory McIlroy and Justin Rose. The course ranks consistently among the best in the country.

A round requires a Big Cedar Lodge reservation, with green fees around $325 and forecaddies on hand through the season. A memorial to Stewart, the two-time U.S. Open champion whose life ended in a 1999 plane crash, sits on the property. The resort’s lodging, restaurants, Cedar Creek Spa, and three other championship layouts make this the simplest one-stop golf trip in the state, with Springfield-Branson National Airport the nearest commercial gateway. The course holds up best in April through June and again from September into October, since the Ozarks bake at midsummer.

Buffalo Ridge

Tom Fazio first laid out this course in 1999 as Branson Creek Golf Club. After Johnny Morris bought it in 2013, he brought Fazio back for a 2014 redesign that added waterfalls, water features, and exposed rock. Now called Buffalo Ridge Springs, the par-71 layout plays 7,036 yards on zoysia fairways with a 73.4 rating and 130 slope, and a herd of North American bison grazes the pasture beside the opening hole as the routing threads limestone outcrops with not a single house in sight. From 2014 through 2019 it co-hosted the PGA Tour Champions Bass Pro Shops Legends of Golf alongside Top of the Rock.

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Green fees generally run about $135 to $275 by season, with the best value off-season. Buffalo Ridge keeps its own clubhouse and practice area about 1.5 miles north of the main Big Cedar campus, and stay-and-play packages open up lodging across the resort. The clubhouse handles food and beverage and houses a pro shop. Springfield-Branson National Airport is roughly 45 minutes out. Late spring and early fall play firmer and cooler than midsummer, though it is worth checking for the March and September aeration weeks before booking.

Top of the Rock

Jack Nicklaus finished Top of the Rock in 1996 as a nine-hole par-3 course on a bluff above Table Rock Lake. When the PGA Tour Champions Bass Pro Shops Legends of Golf moved to Big Cedar in 2014, the layout became the first par-3 course ever used in a Tour-sanctioned event. Its holes reach beyond 200 yards across lakes, cliffs, and rock ledges, and the complex sits next to an Arnold Palmer practice range and a Tom Watson-designed Himalayas-style putting course covering more than an acre. The grounds hold Audubon Signature Sanctuary status, and the par-3 hosted the Legends through 2019.

The course is open to the public, with green fees around $125 for lodging guests. Dining happens at Arnie’s Barn, a 150-year-old structure moved from Arnold Palmer’s backyard in Latrobe, Pennsylvania, that now holds his memorabilia and the pro shop. The Palmer range lets players hit into the cliffside terrain before a round. Springfield-Branson National Airport is the nearest commercial option, about 45 minutes north, and the season runs April through October, with golden hour over the lake making late tee times worth chasing.

Branson Hills Golf Club

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Chuck Smith designed Branson Hills with PGA professional Bobby Clampett as his consultant, and the course opened in June 2009 as Payne Stewart Golf Club before taking its current name. The par-72 routing runs 7,324 yards from the championship tees across six tee sets, with the forward set at 5,323, over A-4 bentgrass greens and Meyer zoysia fairways, and the opening tee shot falls about 130 feet to the fairway below. Each of the 18 holes carries the name of a moment from a Missouri golfer’s career, with tags like Trevino’s Tease, Payne’s Pit, and Chelsea’s Kiss.

Green fees generally land between $175 and $225, with tee times bookable 60 days out. The clubhouse holds the Many Faces of Payne sports bar and the glassed-in Payne Stewart Museum, which displays items lent by Tracy Stewart, among them five Ryder Cup bags and clubs from his biggest wins. Branson Hills sits inside a 1,200-acre gated community about seven minutes from the Branson Convention Center, and visiting golfers tend to stay at Branson Landing’s Hilton properties or in community rentals. Springfield-Branson National Airport is 45 minutes north, and the course is at its best from April through October.

LedgeStone Country Club

Tom Clark’s LedgeStone opened in 1994 inside StoneBridge Village, about 15 minutes from downtown Branson. The par-71 layout reaches 6,881 yards from the back tees and 4,906 up front, with bentgrass greens, tree-lined zoysia fairways, and the steep elevation changes that Ozark mountain golf tends to demand. The signature 15th drops sharply downhill to a three-tiered green and counts among the steepest holes in the state.

LedgeStone is open to the public under the StoneBridge Village Property Owners’ Association, with green fees of about $80 to $120 by season and time of day. The clubhouse sits beside a water feature and houses the pro shop and the LedgeStone Grille. The club runs no lodging of its own, but StoneBridge Village offers third-party rentals, and Branson’s hotels and the Hilton properties at Branson Landing are within 25 minutes. Springfield-Branson National Airport is the nearest commercial option, and April through October brings the best weather.

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Bellerive Country Club

Robert Trent Jones Sr. completed Bellerive’s championship course for a Memorial Day 1960 opening, and the club hosted the U.S. Open just five years later, where Gary Player beat Kel Nagle in an 18-hole playoff in 1965 to complete the career grand slam. The course measures 7,547 yards from the championship tees at par 72, dropping to par 71 for tournaments with the 10th played as a par 4, and carries a 76.3 rating and 141 slope. Rees Jones renovated it in 2006 and again in 2013, swapping his father’s bunkers for his own style, lengthening the routing, and rebuilding the bunker complex. The major-championship roll call is long: the 1992 PGA (Nick Price), the 2018 PGA (Brooks Koepka, whose 264 set a record), the 2004 U.S. Senior Open, the 2008 BMW Championship, and the 2013 Senior PGA, with the BMW returning in 2026 and the Presidents Cup booked for 2030.

Bellerive is private, with membership by invitation and access generally limited to members and guests outside tournament weeks. The clubhouse handles dining on several levels, and practice facilities and event space round out the property. The club sits about 20 minutes from downtown St. Louis and 25 minutes from St. Louis Lambert International Airport, and visiting golfers tend to choose between downtown hotels and Clayton-area boutiques. May through October plays best, when the zoysia fairways and bentgrass greens hit their stride.

St. Louis Country Club

Charles Blair Macdonald designed St. Louis Country Club in 1914, with Seth Raynor handling construction, which makes it one of only a handful of Macdonald-Raynor courses anywhere and the architect’s westernmost work. The par-71 layout plays a modest 6,542 yards but leans on the template holes Macdonald gathered on a research trip to Scotland, including a Redan from North Berwick, a punchbowl from the Old Course at St Andrews, and a blind approach drawn from Prestwick. A restoration led by Brian Silva from 2000 onward reintroduced Macdonald’s original features. The course hosted the 1947 U.S. Open, where Lew Worsham edged Sam Snead in a playoff, plus the 1921 and 1960 U.S. Amateurs, the 1925 and 1972 U.S. Women’s Amateurs, and the 2014 Curtis Cup.

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The club, founded in 1892 as a polo club, is private and invitation-only, and the USGA counts it among the first 100 clubs in America. A full-sized polo field still hosts matches in front of the clubhouse and doubles as the driving range. Bentgrass fairways set it apart in a transition zone where most clubs run zoysia or Bermuda, and the course favors spring and fall. It sits 10 miles west of downtown St. Louis in the Ladue suburb, about 20 minutes from St. Louis Lambert International Airport, with visiting golfers clustering around Clayton and downtown hotels. Late April through October plays best.

Old Warson Country Club

The second Robert Trent Jones Sr. course in St. Louis County, Old Warson opened on April 15, 1954, a year after construction began on 180 acres bought by a group of local businessmen. The par-71 layout plays 6,946 yards from the back tees with a 74.5 rating and 144 slope across undulating, tree-lined ground, showing off the elevated greens, runway tee boxes, broad bunkers, and repeated doglegs that Trent Jones counted as his signatures. The short par-4 14th is one of the most praised holes in the state, its elevated tee shot carrying a lake to a narrow landing framed by water and sand. Old Warson hosted the 1971 Ryder Cup, where the United States beat Great Britain 18.5 to 13.5 in the last edition to feature Arnold Palmer, Jack Nicklaus, and Lee Trevino on the same side, along with the 1999 U.S. Mid-Amateur, the 2009 U.S. Women’s Amateur, and the 2016 U.S. Senior Amateur.

The club is private and invitation-only, and Hale Irwin, the three-time U.S. Open champion and a member since 1977, is the most prominent name on the roster. The course is at 9841 Old Warson Road in the Ladue area, about 20 minutes from downtown and 25 from St. Louis Lambert International Airport. Practice facilities are extensive, the clubhouse covers dining and events, and members’ guests typically stay at Clayton boutiques or downtown St. Louis chains. April through October offers the most reliable conditions.

The Club at Porto Cima

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Jack Nicklaus’s only signature course in Missouri opened in July 2000 on the western shore of the Lake of the Ozarks. The par-72 layout plays 7,060 yards across five tee sets, with seven holes running along or over the lake and a four-hole closing stretch that hugs the shoreline. The 15th is a hard par 5 whose green juts into the water, forcing an approach decision few Missouri courses can match. It has held a top-10 spot among the state’s best courses every year since opening.

Porto Cima is private and run by KemperSports, and membership opens the course, the 17,000-square-foot Mediterranean-style clubhouse, and the neighboring Yacht Club, a 118-slip marina with a pool, fitness area, tennis and pickleball courts, and a poolside cabana. The Grille Room, Sandtrap Lounge, and a patio over the 18th green handle dining. The club is about three hours west of St. Louis and two hours south of Kansas City, with the Lodge of Four Seasons 20 minutes east providing lodging for invited guests. May through October plays best.

Old Kinderhook

Tom Weiskopf routed Old Kinderhook in 1999 on the west side of the Lake of the Ozarks as the centerpiece of a 700-acre planned community. The par-71 course plays 6,726 yards over zoysia tees and fairways and bentgrass greens, working valleys, waterfalls, hills, and water hazards into the surrounding Ozark terrain. It welcomed its first round in May 1999 and has hosted more than 300,000 golfers since, and it ranks among Weiskopf’s stronger solo designs.

Green fees generally run $65 to $115 by season, the resort plays year-round, and an 84-room lodge overlooks the course. The Trophy Room serves dinner and the Hook Cafe handles breakfast and lunch, with the lodge 10 minutes from the Ozarks Amphitheater. Amenities include three saltwater pools (one indoor), a private boat ramp on the Big Niangua arm of the lake, a winter ice rink, and Spa 54. Daily-fee tee times open 30 days out, and lodging guests book first. Camdenton Memorial-Lake Regional Airport takes small craft, while commercial flyers come through Springfield-Branson or St. Louis Lambert. April through October plays best.

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Planning Your Trip

The Big Cedar Lodge complex, with Ozarks National, Payne’s Valley, Buffalo Ridge, and Top of the Rock, plus the nearby public LedgeStone and Branson Hills tracks, fits comfortably into a four or five day trip from a single lodge or cottage base, with arrivals through Springfield-Branson National Airport. St. Louis Country Club, Old Warson, and Bellerive sit close together on the west side of St. Louis around Ladue, Town and Country, and the Clayton corridor, served by St. Louis Lambert International. The two Lake of the Ozarks courses, Old Kinderhook and Porto Cima, split the middle of the state and make a natural halfway stop on a road trip between the two metros.

Green fees span a wide range: under $100 at LedgeStone and Old Kinderhook, about $325 at Payne’s Valley, and various points in between. April through October is the broad season, with the Big Cedar courses holding up best from late spring into early fall and the St. Louis tracks peaking in May and again from September into October. With this much golf packed into a few tight clusters, Missouri rewards a trip built around one region at a time.





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