Holden proposes one of largest tax increases ever

To the editor:

Gov. Bob Holden's budget proposal calls for one of the largest tax increases in the history of this state. Over $750 million in new taxes would attack individuals, small business and corporations if the proposal passes.

The governor claims the tax increases would only affect large corporations and the gaming industry, with no individual taxpayer feeling the effect of this monumental increase. The budget plan includes a $185.6 million tax increase on Missouri business, a $193 million tax increase on the gaming industry, a $278.5 million tax increase on cigarette sales and a $11.9 million tax increase on taxable income over $200,000. How does this not directly affect everyone in Missouri?

In 2002, Missouri lost more than 61,000 jobs -- 90,000 since the beginning of the economic downturn. This was during tough economic times, and businesses made cuts to continue doing business in Missouri.

Holden wants to stimulate the economy with a 1 percent reduction in corporate income tax -- approximately $30 million in savings to business. Missouri business gets taxed $378 million and gets back $30 million. You do the math.

The governor is not closing corporate loopholes. He is closing corporate incentives to continue doing business here in our state. If businesses leave, jobs will follow. Without jobs there can be no economic development and no additional taxable income. Missouri needs to promote growth, not hinder it through large tax increases.

DAVID SMITH

Government Affairs

Associated Industries

of Missouri

Jefferson City, Mo.