Newly proposed tax cut leaves Missouri families, economy at risk

Missouri politicians have announced a proposal to use $1 billion of the federal economic recovery funding coming into Missouri for a temporary tax cut. Although they have not fully disclosed the details of their plan, based on media reports the average family would receive a "rebate" of $25 per month -- or approximately enough for a fast-food meal for a family of four.

What is at risk with this proposal, however, is significant. Congress specifically sent the economic recovery funds to the states in order to prevent cuts in critical services including health care, education, transportation and infrastructure during this difficult economic time. Without the use of this funding, Missouri will be facing a significant budget shortfall that could require large cuts to an array of services.

If lawmakers pursue this tax cut concept, Missouri will also be at risk of losing a significant portion of the federal dollars. In fact, none of the major streams of federal money are actually permitted to be spent on tax cuts.

Not one other state is considering this type of tax cut because it would place an increased burden on future budget years, deepening the budget shortfall in Missouri, and could lead to greater fiscal problems for the state.

Missourians need a balanced approach to the state's budget shortfall. While it is important to keep taxes low in this economy, it is equally important to ensure that funds are available for critical services like education, public safety, health care, transportation, and social services. These services are an investment in Missouri's families and economy. They provide the infrastructure to foster a strong, growing and dynamic Missouri economy.

In these tough times, Missourians know that everyone has to pay their fair share and contribute to our economic renewal. We should not cut vital services for families and children to pay for tax cuts that would deplete those services. If we make cuts now, we will pay in the long run both through decreased services that support our communities and the erosion of the infrastructure that makes our state a great place to live, work and do business.

What Missouri needs is fiscal responsibility and long-term planning, not increased risks. We cannot afford to make poor choices at this time. Missouri's families, communities and businesses are depending on our state lawmakers to do the right thing and invest in the services and infrastructure that will restore our economy.

Amy Blouin of St. Louis is executive director of the Missouri Budget Project.