HANCOCK REFUND IS GOOD INDICATION TAX CUT IS NEEDED

Every Missouri taxpayers' blood ought to be just about boiling by now. Why? Because the state budget director estimates the state's wage earners and corporations paid 5 to 6 percent too much tax in 1995, triggering a refund under the never-before-used Hancock Amendment, which sets a ceiling on state revenue growth.

But isn't that good news for taxpayers? In one sense, it is good to know that the Hancock Amendment will force the state to give back money to Missourians who should never have had to send it to Jefferson City in the first place. On the other hand, the fact that a refund is necessary is a good indication the folks in the statehouse are still a little blurry about raising more taxes than they need.

Mark Ward, the budget director, explains that Missourians aren't being taxed too much. He contends the refund was caused by a drop in taxable income in 1993 because of flooding and a better-than-expected jump in tax collections this year.

Of course, Ward doesn't go on to explain that much of the additional tax revenue this year can be pinned on the largest tax increase in the state's history that was successfully sought by his boss, Gov. Mel Carnahan.

Two things are important in all of this:

-- Not only does Missouri continue to have one of the fastest growing tax burdens in the nation, no one seems to want to talk about what taxpayers want most: a tax cut. Other states are doing it (more than half at last count), but the Show Me State keeps looking for more ways to spend and tax.

-- While the state's coffers are overflowing to the point that it is necessary to send money back to taxpayers, some critically urgent needs aren't being met. Foremost among these is the state's so-called rainy-day fund. This is money that would be set aside to be used only in an emergency, like another Flood of 1993.

There is another bit of news that adds heat to the boiling blood of the state's taxpayers. The same legislation that produced the record-setting tax increase -- SB 380, or the Outstanding Schools Act -- also prevents any savings from settlements in school desegregation cases in Kansas City and St. Louis from being sent back to taxpayers. Instead, the money must be spent -- that's right, used up -- on even more spending on schools across the state without any regard for other needs or the ability of Missourians to keep coughing up more and more money.

Tax cuts should be on the lips of everyone in the state who pays taxes. A big election year is coming up. Lots of folks will want to be your best friend in Jefferson City. Before getting too cozy, taxpayers ought to be asking if candidates for governor, other statewide offices and legislative positions have any inclination to do what's right: cut taxes.

It is a pretty simple question. It will be interesting to see if there are any good answers.