While this post is more of a personal decision making process for an election coming up in a week. It does have economic undertones. So let's just dive right in.
The ballot measure is one that on it's face seems to be a no brainer. It is a constitutional amendment in my home state of Missouri. Amendment 7 is for improving roads. It is a 3/4 percent sales tax required to be spent on road and bridges. The TV ads spout recommendations from first responders, and I admit, our roads do need work, but then where is there perfect roads? .075 cents doesn't seem like a lot for each person, but when you look at what we pay sales tax on, it will take a bite out of disposable income. The real question is whether this tax will improve Missouri's economy. And whether it will do what it is supposed to, improve roads.
In 1984, Missouri started its state lottery. Leading up to the vote to authorize it, it was said that ALL profits from the lottery would go to education. And it did. However, prior to the lottery, education was appropriated through the general fund. Once the lottery was contributing, those general funds dried up. Over the last 5 years, according to the Columbia Missourian, Missouri ranks 49 in education spending. This is a bit misleading, since a lot of spending is done locally through property taxes. The point is, if this measure succeeds, will other money, not legally required to go to roads, dry up? We will be paying higher over all taxes, but where will that old money go?
Missouri is a right leaning state, in fact they cut income taxes recently. Outside of the St. Louis and Kansas City Metro areas, the state is extremely conservative. The legislature is controlled by Republicans. We have a Democrat Governor. Regardless of party, though, politicians have to have other peoples money in order to spend it on important things, unimportant things, and things that will get them reelected.
That is why normally I oppose any tax increases. It is sort of like giving an addict drugs. Over my lifetime, Missouri sales tax has increased from .007% to .425%, municipalities also have taxes that vary but this would push many over 8%, and while there are more roads now than then, inflation would bring in much more money now than then, even if the rate remained unchanged. The rate, however, is up 98%. And the population has increased drastically in that time as well. The state's budget has grown exponentially. I understand why there may be a need for additional taxes, but how much is too much?
In this case, where there is very little opposition, there is limited information on possible draw backs of the proposal. So all we have to use is previous examples, like the lottery. Will this mean in a couple decades, Missouri will be 49 in road maintenance? And while the money must be used for roads, will that mean the politicians can "make a deal" with large corporations?
So what to do? How to decide. Let me know in the comments what you think.
Spend Wisely!
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