Tax relief would spur a lagging economy

Federal tax-relief proposals now moving through Congress as part of the stimulus package could result in lower tax revenue to Missouri, according to state budget officials.

"While good news to taxpayers," the Associated Press reported, "the federal plans could force Missouri government to cut expenses, programs or personnel to make up for lost revenue."

"The governor is deeply concerned about the potential loss of revenue to the state," said Gov. Holden's budget chief, Brian Long.

However, business representatives said Holden's concerns are unwarranted and the projections of lost revenue are off base.

"It looks like the state might gain from it," said Ray McCarty, fiscal affairs officer of the Missouri Chamber of Commerce.

Senate and House versions of the stimulus package differ. But both bills include provisions to accelerate the depreciation allowance that businesses can claim on equipment purchases when filing their federal income taxes.

Because many states link their tax codes to the federal one, Missouri and 44 other states also would see reductions in their corporate income taxes, budget officials say.

Well, good for the tax cutters.

Efforts should be pressed for much-needed tax relief at the federal level regardless of their effects on state revenue.

A national economy reeling from the multiple blows inflicted on it these last two months, when it was already weak long before Sept. 11, needs tax relief.

If this means some loss of revenue to Missouri, so be it.

We hope the stimulus package includes a provision moving up the tax cuts

Congress already approved last summer at the behest of President Bush. If they were also to insert a cut in the capital-gains tax, the equity markets would explode, fattening everyone's retirement accounts, further stimulating the economy and lifting everyone's spirits.

Let's get on with it.