LAWMAKERS: CUT TAXES, DON'T JUST TALK

As the start of the next session of the Missouri General Assembly approaches, state legislators in Southeast Missouri seem to agree on one topic: Missourians are due for some tax cuts. State Rep. David Schwab of Jackson goes even further. He predicts most legislators are in the mood for tax cuts.

They should be. The state continues to collect some $100 million a year in excess revenue, thanks to the Hancock Amendment that caps revenue growth in line with personal income growth in the state. In order to achieve any real tax cuts for the state's taxpayers, legislators must find ways to lower the overall impact of taxes on state revenue to come under the Hancock limits -- and then find ways to provide real tax relief.

All of this comes against the backdrop of a plan by the state's Tax Commission to increase assessments on farm property across the state -- as much as 17 percent. Real estate in Missouri is assessed in three categories: agricultural, commercial and residential. Farmland is assessed at the lowest percentage of market value. Local property taxes are paid on assessed values.

To prevent the Tax Commission's plan from automatically taking effect, the Legislature must act within 60 days after the session starts. State Rep. Patrick Naeger of Perryville already has drafted a resolution to overturn the Tax Commission, but it will take support from the entire Legislature to get the job done.

The Tax Commission's untimely effort to raise taxes is just one example of how nearsighted top state officials have been in dealing with taxation. Why would anyone be looking for ways to increase local tax revenue when the state already collects $100 million too much every year?

Another idea that needs to be carefully thought out is any attempt in Jefferson City to freeze or reduce property taxes. This is a matter for local governments, not the state. The state collects no property taxes. Those taxes are imposed by cities, counties, school districts and a host of other entities that provide services such as sewers, ambulances and libraries. Property taxes are best left up to local elected officials and the voters who are their constituents.

Instead, the state needs to address the income tax it imposes on wage earners all over the state. In addition to complying with the Hancock limits, a well-thought-out reduction in the income tax would provide genuine relief and fuel a continuation of the economic boom the state already is enjoying.

It is easy enough to talk about tax cuts before the legislative session begins. The real interest among taxpayers should be in how effective our elected representatives and senators are in making that talk become a reality.