'97 TAXES PUSH MISSOURI TO MIDPACK

As with any set of figures, statistics about taxation in Missouri tend to get fuzzy unless great care is taken to explain which numbers are being used -- and why.

That certainly is the case in a recent flurry of reports around the state regarding the tax burden on Missourians. There seem to be diametrically opposed viewpoints about taxes. One view is that Missouri's historically low tax burden shows Missourians could afford to contribute more for state needs and programs. The other view is that, in spite of low taxes, Missourians are entitled to relief in a state whose revenue continues to exceed the rate of growth in personal income, triggering refunds under the Hancock Amendment.

Part of the debate arises from the various numbers that are being used to support this view or that one. By and large, Democrats led by Gov. Mel Carnahan point to rankings on almost every tax scorecard that show Missourians are at the bottom of all states for per-capita taxation as well as support for schools and a whole host of social programs. Meanwhile, Republican look with some alarm at other tax figures that show Missouri's per-capital hit is the fastest growing -- up 12 percent in 1997 from 1996 -- in the nation, except for Delaware, whose total tax bite went up a whopping 16 percent in the same period.

Adding to the confusion is which set of figures is being used. Those who claim Missourians enjoy one of the lowest tax hits are still relying on government figures that are two to six years old. Meanwhile, there are up-to-date figures available for 1997 that paint a picture of large increases in Missouri's taxes.

Another confusing point is whether the taxes in question are just those levied by the state or whether they include taxes at all levels of government, from the local library district all the way up to the IRS.

Here's the situation, based on total taxes paid by Missourians. The bite has raised the Show Me State from a ranking at the bottom of all states to the midpoint -- 26th nationally -- as of 1997. In large part, the massive tax increase that accompanied the Outstanding Schools Act and its mandate for local school district to adopt a minimum tax base are responsible for the dramatic change.

And keep in mind that all of this was happening as Missouri collected more revenue than was allowed under the Hancock Amendment, which means everyone who paid state income taxes over the last three years will be getting refund checks.

More tax cuts are needed, and they can be enacted without damaging the level of state services being provided. It's up to the General Assembly to make the cuts -- and to cut through the fog of tax data being bandied about.