MISSOURIANS DESERVE SOME REAL TAX CUTS

In every year since fiscal 1995, state government has taxed Missourians more than is permitted under the Hancock Amendment, which voters approved in 1980. Refunds of this excess tax money have become familiar. So have the tax cut efforts that have become an annual feature of each session of the General Assembly.

This year, action has come early. The Senate Ways and Means Committee unanimously approved a bill that would increase the personal exemption for Missouri residents to $2,100 from $1,200 for individuals and to $4,200 for couples. The proposal, which is being debated in the Senate, would reduce state revenue by $155 million in 2000. The higher exemption would save the average taxpayer up to $54, and families could save up to $108.

The same committee also approved a bill that would eliminate the state franchise tax on corporations, which last year brought in $77 million in revenue. Franchise taxes are based on a company's total assets.

Meanwhile, there is no shortage of other tax cut proposals. There are at least 30 Senate and 60 House bills that have been introduced seeking to cut taxes. "This is the largest proliferation of tax cut bills" ever, said state Sen. Harry Wiggins, D-Kansas City, chairman of the Ways and Means Committee.

Far preferable to this sort of grudging, nickel-and-dime tax cutting would be a bold move to cut income taxes across the board for all Missourians. This would include phased-in repeal of Gov. Carnahan's tax increases of 1993. Whereas the governor proposes tax cuts of $191 million this year, House and Senate Republicans are pushing $300 million in tax cuts. They point out that in each of the last three years, tax cuts have been smaller -- and refunds larger -- than projected.

From a government awash in excess revenue, Missourians should demand real, across-the-board tax relief and nothing less.