Editorial

MISSOURIANS DESERVE BIGGER TAX BREAKS

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Last year's elimination of the state sales tax on groceries didn't stop state revenue from setting another record in fiscal year 1998, which ended June 30. The state's general revenue rose a very strong 5.7 percent over the previous year, even though the state stopped collecting sales tax on food last Oct. 1. Lawmakers voted last year to abolish the tax in order to stem revenue growth that has continued to exceed the constitutional limits of the Hancock Amendment. Elimination of the food tax means savings worth a couple of bags of groceries annually for the average Missouri family.

The general-revenue fund took in a record $6.65 billion, an increase of $350.4 million over year-end collections a year ago. The category of state revenue showing the highest increase is individual income taxes, which jumped a huge 10.39 percent over the previous year. This should put to rest any doubts about Mel Carnahan's being the highest taxing-est governor in Missouri history.

If that double-digit figure doesn't persuade, how about going back to the last four years before the year just ended? Here are the annual percentage increase in state general-revenue collections from 1994 through 1997:

1994: 5.44 percent

1995: 15.6 percent

1996: 6.79 percent

1997: 7.54 percent

Mel Carnahan's tenure as governor has coincided with an ongoing revenue gusher for state government that is the envy of all his predecessors. The flow of state revenue is unprecedented in recent history. Responding to this, he and his party, for so long the majority in Jefferson City, have in each of the last two years cut taxes by what amounts to a piddling few hundred million when measured against the gushing revenue. All the current legislative majority will do in tax reduction is just enough to bring us back down to the Hancock threshold, so as to bring the state within its limit.

Missourians deserve more -- much more -- and the state can afford it. A good place to start would be partial, phased-in repeal of Carnahan's punishing personal income-tax increases of 1993. This fall's legislative elections should feature lively debates over how much and what kinds of tax relief should be passed next year to lighten the load on hardworking Missourians.