Hefty refunds aren't cause of budget crunch

Some state officials are concerned about the growing tax refunds being issued to taxpayers. There are several reasons Missourians will get nearly $1 billion returned to them this year.

One is that many taxpayers still lack the discipline to save their own money, so they purposely overpay income-tax withholding in the hope they will get a refund after they file their tax returns. Another is that many corporate taxpayers are required to pay quarterly estimated taxes 5 percent higher than last year, even if business is off.

Meanwhile, some state taxes have been cut as a response to Hancock Amendment limits on growth in state revenue. But there have been no corresponding cuts in state spending -- until this year, when estimates of revenue growth fell below ever-expanding spending plans.

State officials who say $1 billion in refunds will somehow affect the state budget are raising the wrong issue. The state budgeted for those hefty refunds based on the growing pace of refunds in recent years. The real issue is the failure to curtail spending.