MO Dept. of Revenue Director recommends changing income tax laws

1 year 8 months 4 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
JEFFERSON CITY (AP) — The leader of Special Olympics Missouri says engineers have determined that the organization's main campus was... More >>
1 hour ago Thursday, June 20 2019 Jun 20, 2019 Thursday, June 20, 2019 8:15:00 AM CDT June 20, 2019 in News
COLUMBIA - Some University of Missouri workers and the union representing them are holding a demonstration Thursday to demand higher... More >>
6 hours ago Thursday, June 20 2019 Jun 20, 2019 Thursday, June 20, 2019 3:23:00 AM CDT June 20, 2019 in News
FULTON – A unique camp is being held this week in Fulton for kids with disabilities. The iCan Bike... More >>
11 hours ago Wednesday, June 19 2019 Jun 19, 2019 Wednesday, June 19, 2019 10:42:00 PM CDT June 19, 2019 in News
JEFFERSON CITY - The main runway at the Jefferson City Memorial Airport is ready for planes again, according to Public... More >>
15 hours ago Wednesday, June 19 2019 Jun 19, 2019 Wednesday, June 19, 2019 6:01:00 PM CDT June 19, 2019 in News
LAURIE - Cleanup is underway at the Westlake Aquatic Center after a 93-year-old woman crashed through the building and into... More >>
16 hours ago Wednesday, June 19 2019 Jun 19, 2019 Wednesday, June 19, 2019 5:05:00 PM CDT June 19, 2019 in News
COLUMBIA - PedNet Coalition will host a community bike ride memorial service in honor of the late Darwin Hindman on... More >>
17 hours ago Wednesday, June 19 2019 Jun 19, 2019 Wednesday, June 19, 2019 4:44:00 PM CDT June 19, 2019 in News
FULTON - Former Secretary of State Madeleine Albright will lecture at Weminster College in the fall. Her presentation will... More >>
18 hours ago Wednesday, June 19 2019 Jun 19, 2019 Wednesday, June 19, 2019 3:11:00 PM CDT June 19, 2019 in News
COLUMBIA - Cooper's Landing is projected to partially reopen in time to celebrate July 4th. Flood clean up efforts are... More >>
20 hours ago Wednesday, June 19 2019 Jun 19, 2019 Wednesday, June 19, 2019 1:28:00 PM CDT June 19, 2019 in News
ST. LOUIS (AP) — A suburban St. Louis man is accused of threatening to shoot and kill "every gay person"... More >>
23 hours ago Wednesday, June 19 2019 Jun 19, 2019 Wednesday, June 19, 2019 10:45:00 AM CDT June 19, 2019 in News
BENTON, Mo. (AP) — A southeast Missouri sheriff has fired a deputy who is running against him for sheriff next... More >>
23 hours ago Wednesday, June 19 2019 Jun 19, 2019 Wednesday, June 19, 2019 10:36:14 AM CDT June 19, 2019 in News
SEDALIA, Mo. (AP) — A 29-year-old Missouri man has been sentenced in the stabbing death of a woman in Sedalia.... More >>
1 day ago Wednesday, June 19 2019 Jun 19, 2019 Wednesday, June 19, 2019 8:17:00 AM CDT June 19, 2019 in News
ST. LOUIS (AP) — Authorities say a woman was trapped in a St. Louis jail stairwell for more than two... More >>
1 day ago Wednesday, June 19 2019 Jun 19, 2019 Wednesday, June 19, 2019 8:04:46 AM CDT June 19, 2019 in News
BRUNSWICK - SEMA returned to Brunswick today to continue its training for flood damage assessment. KOMU spoke with multiple... More >>
1 day ago Tuesday, June 18 2019 Jun 18, 2019 Tuesday, June 18, 2019 11:48:00 PM CDT June 18, 2019 in News
HOLTS SUMMIT - Chris Redel is the new Ward 2 Alderman for Holts Summit. The initial election took place... More >>
1 day ago Tuesday, June 18 2019 Jun 18, 2019 Tuesday, June 18, 2019 11:26:00 PM CDT June 18, 2019 in News
JEFFERSON CITY - Police have taken one suspect into custody after a car chase involving guns and drugs took place... More >>
1 day ago Tuesday, June 18 2019 Jun 18, 2019 Tuesday, June 18, 2019 11:00:00 PM CDT June 18, 2019 in News
MID-MISSOURI - One child, 11 months old, died in Calverton Park, near St. Louis, on June 2, 2019. The temperature... More >>
1 day ago Tuesday, June 18 2019 Jun 18, 2019 Tuesday, June 18, 2019 10:07:00 PM CDT June 18, 2019 in Weather
CAMDENTON - The cause of a house fire is under investigation after crews battled flames in Camdenton Tuesday morning. ... More >>
1 day ago Tuesday, June 18 2019 Jun 18, 2019 Tuesday, June 18, 2019 8:52:00 PM CDT June 18, 2019 in News
COLUMBIA - A cash reward has been increased for anyone with information on an injured three-month-old pit bull in St.... More >>
1 day ago Tuesday, June 18 2019 Jun 18, 2019 Tuesday, June 18, 2019 7:13:00 PM CDT June 18, 2019 in News
Columbia, MO
Broken Clouds 70°
10am 70°
11am 73°
12pm 75°
1pm 77°