Neal Boortz covers a proposal in Missouri that will impliment a FairTax-type system for the state. The FairTax is very interesting to me as an alternative to the abomination that is the current progressive income tax system, and I’d love to see a state try out such a system to see how it works, especially a state as close by as Missouri.
Boortz lists some key points of the Missouri proposal:
- Repeal state’s 6 percent individual income tax, 6.25 percent corporate income tax and franchise tax beginning Jan. 1, 2012.
- Replace lost revenue with a greatly expanded and higher sales tax.
- Tax items and services that are currently exempt, including groceries, prescription drugs, medical care and K-12 private schooling.
- Eliminate all tax credits, such as those for historic preservation and maternity homes.
- Exempt business-to-business transactions, used goods and college tuition.
- Give all households a “prebate” to cover higher sales taxes on spending up to the poverty level.
- Require two-thirds vote by Legislature to enact more tax exemptions.
Interested to see how this goes.