- Cape businessman known for starting NARS dies at 49 (2/23/17)9
- Apparent punch at girls basketball game propels lawmaker into action (2/21/17)4
- Business notebook: Owners ready to roll out the Barrel 131 (2/20/17)7
- Japanese restaurant up and running; owner surprised by fondness of sushi here (2/24/17)1
- SoutheastHEALTH, Washington University School of Medicine announce collaboration (2/24/17)23
- Missouri bill would limit transgender school bathroom access (2/22/17)48
- City issues precautionary boil order near Arena Park (2/23/17)
- Former KFVS12 reporter talks about recovery from eating disorder (2/23/17)11
- $22M bond issue would alter Jackson schools (2/22/17)13
- Two men crack market with local cage-free eggs (2/26/17)12
Missouri's financial fortunes have dramatically shifted since Gov. Matt Blunt took office two years ago. At the time, the state was wrestling with a large revenue shortfall. The governor and legislature teamed up to reduce state spending, cut state jobs and enhance revenue-producing opportunities. The result: Nearly $300 million more revenue in the last fiscal year than anticipated. And this year's surplus projections are that high -- and maybe even more.
Whenever government has a pot of money, the inclination is to find ways to spend it. There are parts of state government -- higher education, for example -- that took the brunt of budget cuts when money was tight. Blunt would like to see some of those funds restored.
But, overall, Blunt would like to see less government, not more. And one way to achieve that is by limiting revenue available to be spent on state government. One trial balloon Blunt sent up around the state last week was a tax cut. Several options are under consideration, including elimination of the state's personal income tax.
This is not a new idea. Other states have found that eliminating personal income taxes make them more attractive to investors looking for new plant locations and other business operations. Revenue lost from the income tax is replaced by increased revenue related to increased economic activity.
It's much too early to say what kind of tax cut -- if any -- would best serve Missouri and its taxpayers. But it's good to see the governor trying out some ideas in a series of telephone interviews with news organizations around the state.