GOP LAWMAKERS DEMAND DEEPER CUTS

Three Republican lawmakers Tuesday questioned a Democratic proposal that would give Missourians a state tax credit on the property taxes they paid.

The proposal was listed by House Speaker Steve Gaw, D-Moberly, and Senate President Pro Tem Bill McKenna, D-Barnhart, as a top priority for the legislative session that begins Jan. 6.

Democrats described it as a $100 million property tax cut. The measure also would expand the so-called circuit breaker program, which provides property tax relief to middle- and low-income senior citizens.

Gaw and McKenna said the measure would eliminate the need for making refunds to comply with the Missouri Constitution's Hancock Amendment.

Missourians already are in line for refunds on nearly $700 million in excess tax payments collected over the past three years.

Republican lawmakers Tuesday argued for more substantial tax cuts while welcoming the Democrat plan as a starting point.

Rep. Mary Kasten, R-Cape Girardeau, said Republican lawmakers have pushed for tax cuts for years, only to be ignored by the Legislature's Democratic majority.

"Anytime we are reducing taxes, I am favorable toward that," Kasten said.

She said any significant tax cuts likely would have to include an income-tax cut.

Rep. Pat Naeger, R-Perryville, said the Democrat's plan isn't a true tax cut.

"You can't take money from somebody illegally, unconstitutionally and then find another form in which to give it back," he said.

The property-tax credit doesn't address all the individual and corporate income taxpayers who are owed refunds because the state illegally collected too much money.

"You can't steal somebody's car, put 100,000 miles on it, rip the seats, tear up the dash and a year later bring it back and say, `I didn't really steal it; I brought it back,'" Naeger said.

He and other Republicans said Missouri violated the state constitution as a result of Senate Bill 380.

Naeger said the measure, which provided increased school funding, imposed the largest tax increase in Missouri history.

Naeger said he favors a cut in property taxes, which were raised by Senate Bill 380.

"But I want to do more," he said from Jefferson City, where House Republicans were caucusing.

The Perryville Republican wants the dependent deduction raised from $400 to $1,200. He also favors tuition tax credits for families so they may choose where to send their children to school.

Naeger said Missouri taxpayers should be frustrated by the state's inability to comply with the tax-limitation requirements of the Hancock Amendment.

Refunds to Missourians have been held up by litigation. But the ultimate solution, he said, is to cut taxes.

Sen. Peter Kinder, R-Cape Girardeau, said he and other Senate Bill 380 opponents had warned in 1993 that the tax increase would violate the Hancock Amendment.

"We were dismissed and laughed at at the time," Kinder said.

But time has shown that he and others were right, Kinder said.

"Senate Bill 380 mandated higher property taxes in half of school districts in Missouri, most of them south of the Missouri River," Kinder said.

Those lawmakers who supported Senate Bill 380 are trying to fix the problem they created, he said.

Kinder said the Democratic tax cut plan hasn't been finalized. Still, Kinder welcomed talk of tax cuts.

"We are glad to see they are talking like Republicans," he said.

Rep. David Schwab, R-Jackson, also welcomed the news.

But he said that the Democratic House leadership had refused to consider substantial tax cuts last year.

Both Reps. Larry Thomason, D-Kennett, and Joe Heckemeyer, D-Sikeston, expressed support for some type of property tax cut.

"I am hoping that we can expand it beyond $100 million," Thomason said.

But Thomason said there isn't a way to provide equitable tax cuts for everyone., "If you're trying to touch every Missourian, it is almost impossible to do."

Thomason said Missouri remains one of the best financially managed states in the nation.

Heckemeyer said a property-tax cut either through a credit or some other means is a good idea.

"I would certainly like to see a reduction in the property tax for the simple reason that Senate Bill 380 was an increase in property tax for most people and this would help offset that burden," he said.