BEWARE OF AMENDMENT 7 AND JUST SAY "NO" TO MORE TAXES!

One statewide ballot proposition you should be familiar with prior to Tuesday's voting is Amendment 7. Let's take a look at this little-understood amendment, which, if passed, could have truly farreaching implications:

School districts, city and county governing bodies may adopt property tax rates authorized in this section by majority vote. Changes authorized rate for school districts from $1.25 to $2.00 per one hundred dollars assessed valuation. Costs depend on actions of local governing bodies or voters. Raises maximum levy school districts could adopt without a vote and raises the maximum levy which could be adopted with a simple majority vote.

Make no mistake:

Amendment 7 will make it easier for local school boards and other government entities to raise your property and other taxes without a vote of the people.

This is a shame, because Amendment 7 contains some worthy provisions. For instance, it is reasonable to favor allowing school districts to change their minimum and maximum school property tax levies. Such a provision would afford an opportunity for school districts to increase funding on a local level and, thereby, decrease pressure for statewide tax increases.

According to a newsletter from the Taxpayers Research Institute of Missouri (TRIM):

"A provision added to the measure in the last hectic days of the session made a major change in the amendment. Added ... was an authorization for all cities, counties and many school districts to ignore the constitutional tax limitation (Hancock) amendment provisions requiring tax rate rollbacks. Rollbacks are required when assessed valuation, aside from new construction, exceeds the general price increase level. Many of the required rate rollbacks since 1985 could be reversed by cities, counties and a number of school districts without approval of voters."

The TRIM newsletter concludes:

"Almost every Missouri city and county and many school districts, thus, could increase property taxes if this measure is approved. Some of the property tax increases could be substantial ..."

As written and submitted to voters, Amendment 7 is a major attack on Missouri's tax limitation amendment (also known as "the Hancock Amendment." In the 12 years since its enactment, the Hancock Amendment has been one of the few brakes we have had on the exploding growth and costs of government. If you don't feel you're paying enough property taxes, and want to make it easier for politicians to hike your taxes, you should favor Amendment 7. Other Missouri voters will vote "NO" on Amendment 7.

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While panic-stricken politicians in both parties rush about, whining about the federal budget deficit, what it means, and how to address it, it's clear that great leaders in other countries have absorbed the lessons of the 1980s better than many in our own country. Consider our Mexican neighbors, who are fortunate enough to be led by a visionary president in the mold of Ronald Reagan.

Supply-side in Mexico

As U.S. politicans continue to shout about the deficit, the Mexicans have quietly balanced their budget. Projections are that Mexico will have a fiscal surplus in 1992 amounting to 1.8 percent of Gross National Product. And this is excluding revenues from privatization projects. How have they done it? President Carlos Salinas recently shared with The Wall Street Journal a part of their formula that U.S. politicians would do well to keep in mind:

WSJ: "On the tax front, revenues have been increasing greatly."

Salinas: "By reducing rates."

WSJ: "So you're convinced that supply-side economics works?"

Salinas: "Oh, it works very well. We've had inefficient (high) rate levels that stimulated people to avoid paying taxes. Now we have rates that are internationally competitive, and a very strong system of revenue collection."

Wall Street Journal