Testimony on SJR 29: Income Tax Repeal
reportIn evaluating SJR 29, policymakers should have a clear understanding of how broad the tax base could actually be under such a plan, what the tax rate would actually have to be in order to make the plan revenue-neutral overall, and how the plan overall would affect Missourians at different income levels. My testimony presents estimates on each of these important points, and discusses difficulties associated with implementing the plan as described. The main findings presented in the testimony are that the revenue-neutral tax state sales tax rate under SJR 29 would likely have to be over 11 percent, more than twice as high as the bill’s language specifies, and that this plan would result in a tax increase for most low- and middle-income Missourians while cutting Missouri taxes for the very best-off taxpayers.