IT'S ABOUT TIME, SAYS GOP

The Missouri Supreme Court's decision clearing the way for income tax refunds under the Hancock Amendment is a good Christmas present for taxpayers, Southeast Missouri lawmakers said Tuesday.

Republicans said the refunds are long overdue. They said the administration of Gov. Mel Carnahan has violated the state tax lid for the past four years.

"I think all along we should have been doing the refunds when we found out that we over-collected on the taxes," said state Rep. David Schwab, R-Jackson.

Schwab and other GOP lawmakers believe the governor never wanted to refund the money.

But state Rep. Larry Thomason, D-Kennett, said two lawsuits -- including one filed by Auditor Margaret Kelly, a Republican -- had prevented the state from issuing the refunds.

State Sen. Peter Kinder, R-Cape Girardeau, said Kelly wasn't to blame. Her lawsuit argued that more money was due taxpayers.

"Her lawsuit didn't hold up the checks; it was the challenge to the constitutionality of the Hancock Amendment that held those up," Kinder said.

That lawsuit was filed by associations representing low-income people who argued that it was unconstitutional to return money only to income taxpayers. The state's highest court rejected that argument.

Missouri Republican Party Chairman Woody Cozad said the Carnahan administration illegally collected some $775 million in state income taxes.

But Thomason said there wasn't anything illegal about it. "It is legally collected," he said.

The money, he said, just has to be refunded under the tax-lid formula spelled out in the state constitution's Hancock Amendment.

Thomason accused Republicans of playing politics over the court decision.

"I am surprised Woody Cozad doesn't take credit for Christmas," Thomason said.

Schwab said he hopes the court ruling will give taxpayers the refund they deserve. He said he had many calls from constituents who were frustrated because the refunds were being held up in court.

The Jackson Republican said the court ruling could spark even greater efforts on the part of lawmakers to cut taxes next year.

"I have always been of the philosophy that dollars left in the individuals' pockets are a lot more productive than the money the state collects and tries to spend," he said.

"Definitely, this is a victory for taxpayers," he said.

Thomason said the tax refunds reflect the state's booming economy.

"It is good for the people of this state that the economy is doing so well that they actually get a refund on taxes," he said.

"It doesn't point out anything except the great job Mel Carnahan has done in managing this state," Thomason said.

He said the Supreme Court ruling won't put added pressure on the Legislature to cut taxes.

Thomason said he supports tax cuts within reason. "Let's cut taxes while we can, but let's not get crazy about it."

Thomason said Missouri ranks 47th in the nation in terms of the per capita tax burden.

"It doesn't sound like a tax-and-spend liberal state to me," he said.

Thomason said the tax refunds should be welcome news to taxpayers. "The great thing about this is it is a good Christmas present for the citizens of Missouri," he said.