October 29, 2012

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Up in Smoke: Politicians and Tax Increases

Over the last several weeks, I have discussed ballot measures we will vote on in November. Of the four initiatives, the tobacco tax increase also known as Proposition B has spurred the most feedback. Many readers have mentioned that Missouri has the lowest tobacco tax in the nation and that cigarettes can damage our health. Others said that a 760 percent tax increase is too much in difficult economic times. I agree that now is a poor time to raise taxes. To me, this proposed tax increase seems too large. For those who believe the funds will go to a good purpose, I will remind them our challenge is not a lack of budget funds, but how we spend them. The solution is not more revenue raised on the backs of hard-working citizens; it is prioritizing the funds available. If Proposition B is passed, it will be one of the largest tax hikes in Missouris history. The funds from this increase are to go to our state's schools and other worthy causes. However, I still hear from constituents who are

frustrated that gaming funds casinos and the lottery do not seem to be an addition to what our schools are receiving from the state. All of these funds were supposed to fund our schools and help solve our education problems. Since then, our largest two school districts have become unaccredited. And now, we are faced with yet another campaign to raise taxes for our schools that could end with a broken promise. Those supporting Proposition B claim lawmakers could only use the money for education and health care. Missourians have rejected similar tax increases on the ballot in 2002 and 2006. My fear is that the additional funds will only prevent us from making the tough decisions necessary to cut wasteful spending in our state. Since 2001, the state has received more than $1.8 billion in funds from the Tobacco Master Settlement Agreement. These funds come directly from tobacco companies as compensation stemming from a lawsuit in the mid-1990s. Of the $1.8 billion allocated to Missouri thus far, only 0.3 percent of the funds have gone to tobacco prevention programs. So, where has all of the money gone? It has helped fund certain programs not necessarily related to tobacco prevention or even education. It is important to understand, Proposition B is an initiative and the Legislature has the ability to overturn or make changes to its intent and purposes. Proposition B would also establish a commission of political appointees to spend almost $60 million of our tax dollars per year without oversight. This unelected panel could spend tax dollars on virtually whatever they want with zero accountability. Diverting money is a classic way to avoid tough decisions to cut spending. I am concerned that

this massive tax increase would ensure wasteful spending will continue, or become even worse, in our state. Our elected officials are accountable each and every election, while the commission established in this initiative is not. In addition, I have never felt a tax increase of this size was necessary to continue to provide existing services in this state when we continue to have tax credits and other spending programs that are out of control. I am a no vote on Proposition B. However, I do have many constituents that feel otherwise on this issue. We will soon know the outcome of this issue after the Nov. 6 election.

Senator Stouffer serves the counties of Carroll, Chariton, Cooper, Howard, Lafayette, Macon, Ray, Saline, and a part of Clay. If you have questions or comments about this or any other issue, please call toll free (866) 768-3987 or by e-mail at bstouffer@senate.mo.gov.
bstouffer@senate.mo.gov | www.senate.mo.gov/stouffer State Capitol, Room 332, Jefferson City, MO 65101 | (866) 768-3987