Jeff City Report April 19: Income Tax abolished, Min Wage attacks, Guns on campus
This week, as most, I had visitors in Jeff City from my district. This week though was special. People from my church came down with other people from area churches to talk to the legislators about Health Care. They called on all the KC area Reps and Senators and asked us about when Health Care would be passed. It was special to me to see people that I see in church every Sunday take time from their lives to come down and do this. I was very proud to be part of the Faith Community at St. Anthony's Church. I only wish I had better answers for them
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Two attacks on Minimum wage pass the House this week
Rollback of the Minimum Wage sought by Restaurant Association - but now they say they want even more and now more small businesses will be exempt from the Minimum Wage
First, we had the bill that sought to roll back the minimum wage for employees that receive tips. Restaurant owners claim that they will go out of business if they have to pay the wage of $3.52 per hour to their servers who receive tips. The Minimum Wage is $7.05 per hour but tipped employees only get one half of that. Restaurant owners claim that is breaking them. When the rollback ran into major opposition the sponsor toned it down some and just asked for a freeze rather than a roll back. That apparently is not enough for some. Here is the best coverage: St Louis Post Dispatch Story on wage cut
But the punch line to the debate was another bill that came through this week. It is called "The Small Business Get off My Back Bill." I swear this is true. I could not make up things this silly. But what the bill actually does is not funny at all. The bill expands the number of businesses that are Exempt from paying minimum wage. Right now businesses with gross sales of less that $500,000 do not have to pay minimum wage. This bill raises that limit to One Million Dollars. Good explanation of this in the St Louis Business Journal
These bill both passed on a fiercely partisan split. House Bill 258, the tipped employees issue, passed 86-74 (it needed 82) with All Democrats voting against it. Three Republicans jumped ship and joined the Dems: Jason Brown, Ryan Silvey and Gary Dusenberg all three of them are from the KC Metro area. So that bill passed with only Republicans voting for it.
The other bill that vastly expands the number of businesses that are EXEMPT from Minimum Wage is House Bill 795. It passed 87-74. All Democrats except Kate Meiners (D-Kansas City) voted against the bill. Rep Jason Holsman, although he opposed the first bill and continued to vote later, did not vote on this one and was shown as absent.
Guns on College Campuses was a hot debate
House Bill 668 will authorize guns on college campuses
House Bill 668 Removes the prohibition from the Concealed Carry law that persons with a permit cannot carry guns on college campuses. This provision has touched off opposition from the academic community. The bill also lowers the age from 23 to 21 for concealed carry permits so it surely would increase greatly the chances that more guns will be in colleges. This bill passed 105-50.
I voted No. Some of you will recall that I voted against concealed carry. This year I stood at the microphone and told the House that I believe I was wrong on that issue. I argued then that more guns would likely result in more violence. On the other hand the proponents of concealed carry argued it would reduce crime. It appears that we were both wrong. Neither has happened. But when we passed Concealed Carry certain places were excluded including bars, stadiums and schools including colleges. Now this bill proposes to allow guns in colleges. I am willing to admit that what I predicted has not happened with concealed carry but I am not willing to take that chance on college campuses. I hope I am wrong again. The bill now goes to the Senate so it is a long way still from becoming law.
Budget Committee in Senate restores some Health Care
The Senate has put some Health Care back into the Budget that the House sent over. Now the Budget bills return to the House where it is customary to send them to a Conference Committee to resolve the differences between the House and Senate versions. This year the House refused to spend any of the Stimulus funds and held the line on Health Care. The Senate is spending some of the money the Federal Government will send and is restoring some of the Health care cuts.
House votes "Fair Tax" which would abolish Income Tax
HOUSE VOTES TO ELIMINATE INCOME TAX, HIKE SALES TAX
The House this week approved a proposed constitutional amendment that would eliminate Missouri's income tax and replace it with a higher sales tax. The measure went to the Senate on a 90-65 vote.
The individual and corporate income taxes currently account for the bulk of state general revenue collections. HJR 36 would eliminate those taxes but bump the state sales tax to 5.11 percent from the current 4.225 percent. Although it would be just a modest percentage-point increase, the scope of the tax would be greatly expanded to apply to services, which currently aren't subject to the sales tax, in addition to goods. Supporters say the expansion of the sales tax base would generate revenue sufficient to replace the income tax.
Supporters claim the sales tax is a fairer method of taxation and harder to avoid paying than the income tax. Opponents say it would shift the tax burden to the poor. They also contend the replacement sales tax rate would be far too low to cover the lost income tax revenue, resulting in massive cuts to government services.
AND THEN IN THE NEXT BREATH: THE HOUSE APPROVES (DRUM ROLL PLEASE) MONTH-LONG SUSPENSION OF SALES TAX -
Hours after approving legislation to eliminate the state income tax and replace it with a higher sales tax, the House of Representatives voted 102-56 to suspend collection of the state sales tax for one month a year. The measure now advances to the Senate.
HB 952 sponsored by state Rep. Mike Sutherland, R-Warrensburg, would lift the state sales tax for four weeks each July, costing the state at least $230 million a year in lost revenue. Supporters say it would give the state an economic boost, while opponents say it would leave a gaping hole in the state budget. No word on why July rather than some other month such as December or January when heating bills are high but I guess it doesn't really matter since this was an exercise in political posturing anyway. No one actually expects either bill to become law.
Oh yes, we did point out HB 952 is incongruent with HJR 36, which the House earlier passed to eliminate the income tax and make sales taxes the state's primary revenue source. If both measures were ultimately to become law, however, HJR 36 would render HB 952 invalid.
So in the end these were just feel good votes. Abolish income taxes! Yay! oh yeah and we don't want to pay Sales Tax either - Yay! In order for this to really happen the bill have to get through the Senate and be voted on by the people of the State.
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Thank you for the opportunity to serve.
State Rep John Burnett
@ 9:56 PM
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