STATE PETITION DRIVE SEEKS TAX-PAYER FINANCED ELECTIONS

Missouri Voters For Fair Elections has received state approval to start a petition drive aimed at funding political campaigns with tax money in the amount of $13 million a year.

The St. Louis-based coalition's goal is to get an initiative proposal on the state election ballot in 2000 that would require Missouri employers to foot the bill.

A year ago the group promoted individual taxpayer-financed election campaigns in Missouri. The group collected enough signatures for that proposal to be put on last November's ballot but eventually scuttled the drive.

Promoting new ways to finance elections with so-called clean money, or public financing of political campaigns, has cropped up in a number of states over the past three years, said Ruth Steinmetz, the group's campaign coordinator.

"Measures have passed in Arizona, Maine and Massachusetts by votes and in Vermont by legislators," said Steinmetz. Missouri and Oregon have petition campaigns under way to get the issues on the ballot in 2000.

The Missouri Chamber of Commerce, which led opposition to the 1998 initiative, is preparing to fight the latest drive.

The coalition's proposal would increase the annual franchise tax on all corporations with assets of more than $2 million.

"What we're looking at is about a one-hundredths of 1 percent increase in the franchise tax," said Harriet Woods, former lieutenant governor of Missouri and now an instructor at the University of Missouri-St. Louis. She supports the initiative.

Many businesses won't be involved, said Woods. "Only those with assets of more than $2 million" would be, she said.

Woods said the issue would open a more democratic process for qualified candidates.

"Now, some qualified candidates don't run because of campaign costs," she said. "We've talked to many businesses, and many are fed up with the present political fund-raising system."

Woods said the initiative has the support of aboaut 50 groups and organizations.

The president of the Missouri Chamber of Commerce, Dan Mehan, said: "It's no coincidence that the franchise tax is the target of this misguided initiative. It was the chamber's franchise tax reduction campaign signed into law only two months ago that gave Missouri employers their first broad-based tax reduction in Missouri history."

The franchise tax legislation increased minimum assets required for payment of corporate franchise taxes from $200,000 to $1 million and reduced the franchise tax rate by about 33 percent. The franchise tax reduction legislation was designed to stimulate business growth and job creation.

"This absurd initiative by this radical group threatens to negate the ground that was gained by the franchise legislation for the purpose of paying for political campaigns for candidates these taxpayers may not even support." said Mehan. "It's ludicrous."

John Mehner, president and chief executive officer of the Cape Girardeau Chamber of Commerce, agreed.

"Going after businesses is not the kind of message we want to send out," said Mehner. "It will hurt economic development."

It's no surprise that the coalition is targeting Missouri employers to solely shoulder the burden of the group's plan, said Mehan. "Among others, the group's supporters include six labor unions, The Missouri Coalition for Single Payer Health Care, the Sierra Club and Association of Community Organizations for Reform Now."

ACORN was behind the minimum wage increase ballot issue in 1996.

"Would you expect (ACORN) to be behind any issue that makes economic sense?" asked Mehan.

The chamber also questions the coalition's financial estimate of the cost of the election proposal, said Mehan.

The cost of the proposal has increased from $11 million to $13 million since last year, said Mehan. Although the group has said the initiative carries a $13 million a year price tag, there is no way to project the final financial impact since the fund must match the spending of candidates who choose not to participate in the program, he said.

"In addition, the fund is tied to the consumer price index, guaranteeing an increase on the amount of state tax dollars dedicated to political campaigns every election year," he said.

Woods said the cost estimate is based on expenditures of legislators over a period of time calculated with help from the legislative staff.

Mehan said: "Ultimately it comes down to this question: Do you want to pay for the political campaigns of candidates that you don't know and may not even support? Missourians should not be forced to give their hard-earned dollars to politicians.

"Whether you are a business owner paying the proposed franchise tax increase or a consumer who ultimately will pay a hidden tax through increased prices of goods to services, this initiative will cost you and solve nothing," said Mehan.

The coalition operates under the guise of "cleaning up elections," said Mehan. "It will simply make taxpayers pay for it."

The new plan is similar to the 1998 plan. Funds would go into a trust fund to be doled out to qualified candidates for legislative or statewide office. Candidates running for state representative could receive $15,000; state senators, $50,000; governor, $1 million; and other candidates for statewide office, $500,000.

That money could be awarded for both primary and general elections, said Mehan.

The coalition must collect from 60,000 to 80,000 signatures from six of the state's nine congressional districts.

"We collected 125,000 signatures during the 1998 drive," said Steinmetz.