MO Dept. of Revenue Director recommends changing income tax laws

2 years 9 months 2 weeks ago Wednesday, September 20 2017 Sep 20, 2017 Wednesday, September 20, 2017 4:02:00 PM CDT September 20, 2017 in News
By: Kevin Levine, KOMU 8 News Reporter
loading

JEFFERSON CITY - Personal and corporate income taxes currently account for about 75 percent of Missouri's revenue.

The state's Department of Revenue Director thinks that's way too high, and wants to change how Missouri taxes its residents.

"Income taxes are inefficient, they're an unreliable stream of income and they really do not incentivize behaviors that drive economic growth the way other types of taxes are more beneficial than an income tax," Joel Walters said. 

Walters believes lawmakers should look into replacing the income tax with an alternative tax. One suggestion is the gross receipts tax, which taxes all businesses a low percentage on their total receipts.

"I think that we should be thinking about moving away from income taxation to more transactional consumption types of tax, even if it's income based," Walters said. "But [we should be thinking about] those kinds of taxes as opposed to a more traditional income tax, and we should be thinking about leveling the playing field for all citizens and businesses."

MU Economics professor Aaron Hedland said many economic experts believe the government should tax consumption instead of income.

"Essentially it's taxing what we use instead of what we produce," Hedland said. "Part of the reason for that is if you tax income, you're also discouraging investment, whereas if you tax consumption it does not discourage investment as much." 

Hedland said taxes shift people's behavior in the market, and the goal of a tax is to fund the government while also encouraging positive investments.

"When it comes to tax reform, it's not just about how much money the government takes in, it's about how the government takes in the money," Hedland said. "Unfortunately, there are many instances where people are making economic decisions not based just on fundamentals, but on what the tax code is discouraging and encouraging. The net effect of that is we end of having a smaller economic pie and less prosperity than if we had a simple, neutral tax code which had as its only goal raising the amount of money we as a society think is necessary for the government."

More News

Grid
List
HUNTSVILLE - An employee at the Randolph County Sheriff's Department was fired after body camera video was released to a... More >>
1 hour ago Friday, July 10 2020 Jul 10, 2020 Friday, July 10, 2020 3:49:00 PM CDT July 10, 2020 in News
COLUMBIA - Police are looking into two reports of indecent conduct on the MKT Trail, both of which happened within... More >>
1 hour ago Friday, July 10 2020 Jul 10, 2020 Friday, July 10, 2020 3:39:37 PM CDT July 10, 2020 in News
COLUMBIA- Tiger Academy of Gymnastics is hosting a summer camp for kids to attend, but it is going to look... More >>
2 hours ago Friday, July 10 2020 Jul 10, 2020 Friday, July 10, 2020 2:22:00 PM CDT July 10, 2020 in News
COLUMBIA - UM System leaders unveiled a new plan to bring broadband access to a rural pilot community on Wednesday.... More >>
4 hours ago Friday, July 10 2020 Jul 10, 2020 Friday, July 10, 2020 12:09:00 PM CDT July 10, 2020 in News
JEFFERSON CITY - The Bicentennial Bridge project is a $3.75 million dollar bridge to connect the Missouri State Capitol Complex... More >>
4 hours ago Friday, July 10 2020 Jul 10, 2020 Friday, July 10, 2020 11:51:43 AM CDT July 10, 2020 in News
JEFFERSON CITY (AP) — President Donald Trump has approved Missouri’s request for a federal disaster declaration for severe storms in... More >>
5 hours ago Friday, July 10 2020 Jul 10, 2020 Friday, July 10, 2020 11:38:46 AM CDT July 10, 2020 in News
COLUMBIA – The city mask ordinance for Columbia goes into effect at 5:00 p.m. on Friday, and education will be... More >>
5 hours ago Friday, July 10 2020 Jul 10, 2020 Friday, July 10, 2020 11:00:00 AM CDT July 10, 2020 in News
COLUMBIA (Missourian) - In the midst of Missouri’s budget crisis, $125 million from the CARES Act will help higher... More >>
6 hours ago Friday, July 10 2020 Jul 10, 2020 Friday, July 10, 2020 10:42:31 AM CDT July 10, 2020 in News
COOPER/BOONE/CALLAWAY COUNTY - Crews will begin striping work on I-70 on Sunday, and the work will continue into August. ... More >>
8 hours ago Friday, July 10 2020 Jul 10, 2020 Friday, July 10, 2020 8:01:00 AM CDT July 10, 2020 in News
(CNN) -- Kansas City Chief's player Mitchell Schwartz spoke out on Thursday about DeSean Jackson's anti-Semitic social media posts ,... More >>
10 hours ago Friday, July 10 2020 Jul 10, 2020 Friday, July 10, 2020 6:45:00 AM CDT July 10, 2020 in News
As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. You can... More >>
12 hours ago Friday, July 10 2020 Jul 10, 2020 Friday, July 10, 2020 4:29:00 AM CDT July 10, 2020 in News
CALLAWAY COUNTY - Deputies have identified the man whose body was found near Millersburg on Thursday as 31-year-old Ervin Hayes... More >>
21 hours ago Thursday, July 09 2020 Jul 9, 2020 Thursday, July 09, 2020 7:36:00 PM CDT July 09, 2020 in News
BOONE COUNTY- Businesses outside the city limits of Columbia are now having to decide what to do about the mask... More >>
22 hours ago Thursday, July 09 2020 Jul 9, 2020 Thursday, July 09, 2020 6:33:00 PM CDT July 09, 2020 in News
COLUMBIA - The COVID-19 pandemic changed a lot about how we live, and unemployment benefits weren't left out. Unemployment... More >>
23 hours ago Thursday, July 09 2020 Jul 9, 2020 Thursday, July 09, 2020 5:45:00 PM CDT July 09, 2020 in News
JEFFERSON CITY – As cases are beginning to spike, some counties are struggling to keep up with the demand for... More >>
23 hours ago Thursday, July 09 2020 Jul 9, 2020 Thursday, July 09, 2020 5:38:00 PM CDT July 09, 2020 in News
MOBERLY - The city has acquired what was formerly the Moberly Junior High School, and now is working to figure... More >>
1 day ago Thursday, July 09 2020 Jul 9, 2020 Thursday, July 09, 2020 2:42:00 PM CDT July 09, 2020 in News
COLUMBIA — Columbia Parks & Recreation will host a public input meeting tonight to discuss plans for a new trail... More >>
1 day ago Thursday, July 09 2020 Jul 9, 2020 Thursday, July 09, 2020 2:31:00 PM CDT July 09, 2020 in News
COLUMBIA - People have been busy buying masks to prepare for the mask ordinance taking effect Friday, and businesses are... More >>
1 day ago Thursday, July 09 2020 Jul 9, 2020 Thursday, July 09, 2020 1:51:00 PM CDT July 09, 2020 in News
Columbia, MO
Broken Clouds 89°
5pm 90°
6pm 90°
7pm 89°
8pm 85°