THE PUBLIC MIND: BOLSTER THE TAX BASE BEFORE ATTEMPTING TO RAISE TAXES

To the Editor:

You have to congratulate our hard-working legislators in Jefferson City. The headlines say the House tax plan is now up to three-quarters of a billion dollars. Incredible. Fortunately, the voters will have the final say on this folly. The sad thing is Missouri could clearly benefit from increased revenues for education and other important state services, but it is hard to see how voters will approve such a massive tax increase.

It is also disappointing to see such a total lack of creativity in Jefferson City on how to increase state revenues. There are, in fact, two ways more money can be brought into state coffers. One obviously is to increase taxes through new taxes or higher tax rates. The other is to increase the tax base. If our legislature were working as hard on finding ways to fuel the state's economy as they are on burdening it with new taxes, could we not then generate the needed revenues through a broadened tax base?

It seems that states all around the country are raising taxes. There is ample evidence in states like New York, New Jersey and Massachusetts that mammoth state taxes are a detriment to the quality of life. Should Missouri jump on the bandwagon too? Why not take another approach? Instead of raising taxes, maybe we should cut some taxes in ways to help Missouri businesses expand and to entice industries located in other state to relocate. One cannot help but wonder how many enterprises in high tax states would be willing to pack up and move thereby increasing our tax base and state revenues.

With McDonnell-Douglas having just lost a major defense contract, a recession still hanging on, a sluggish auto industry, and the more taxes mentality in the State Capitol, our state tax base is likely to shrink, negating much of what the legislature is trying to accomplish by raising taxes. Though we Missourians may need more state revenues, our legislature appears to be completely ignoring expanding the tax base as a way to achieve the goal. In my opinion we should try ways to increase the tax base first and turn to higher taxes as the last resort.

Mike Buchanan

Cape Girardeau