Missouri Senator Says Switch to Sales Tax Helps Economy
JEFFERSON CITY (AP) - A state senator says she has a new plan to replace Missouri's income tax with a sales tax on a wider variety of goods and services.
Smithville Republican Luann Ridgeway said Monday that the new draft of the legislation would allow the state to set a general revenue sales tax of 7 percent. An earlier version of the measure had capped the tax at about 5 percent. Her legislation would put the change before Missouri voters in November 2012.
Former Missouri budget director Jim Moody says the state may not be able to balance its budget with a 7 percent sales tax.
Ridgeway's resolution is before a Senate tax committee. Debate on a similar House measure stalled last week.