On the August 5 Missouri primary ballot you will be asked to vote on Amendment 7, the largest tax increase in the history of the state. We urge you to vote NO.
Amendment 7 would authorize a ¾ cent increase in both sales and use taxes to pay for improvements to the state’s transportation system. Unlike the gas tax, which has traditionally been used to fund the highway system, the heaviest burden for paying this sales tax will fall on Missouri families, particularly those with low incomes.
Those who profit from Amendment 7, like the trucking industry, construction contractors and consulting engineers, will pay virtually nothing. Not surprisingly, these are the special interests that tirelessly lobbied our legislature to put this proposal on the ballot and are now pouring millions of dollars into the election campaign.
This huge tax increase is being proposed at the same time that the General Assembly is doing everything possible to cut taxes and reduce spending on essential public services like education, healthcare, public safety and the social safety net. This is the same state that refused to expand Medicaid, alleging fear that it might lead to additional costs several years into the future. This is the same state that leads the nation in kicking people off of food stamps. The hypocrisy of Amendment 7 is stunning.
The Missouri Department of Transportation and the proponents of Amendment 7 are making vague promises that this new tax will create jobs and improve safety. In fact, Missouri has been on an unprecedented spree of highway construction over the last 10 years, and the result is that we have more pavement per capita in St. Louis and Kansas City than any other large metropolitan area in the nation. Yet, our state and local economies are some of the slowest-growing.
The promise that this tax will create jobs sounds good, but other than short-term construction jobs, history and common sense tell us it won’t happen. And MoDOT is certainly capable of fixing deficient bridges and making other safety improvements to roadways with its current budget or with a very small tax increase.
County Executive Charlie Dooley has correctly pointed out that this is a case of misplaced priorities. So why is Mayor Francis Slay supporting this huge tax increase on his constituents? He argues that the city is going to get some great projects from this program. Perhaps we might, but at what price? We will send more money to Jefferson City than we get back.
The proposal will increase the combined sales tax rate in the city to over 11 percent in some places, making it hard on consumers and local businesses. It will make it more difficult for the city and the state to pay for truly essential services in the future. And it will lead to a further expansion of the highway network in suburban and rural areas that has encouraged and enabled the drain of population and jobs from the core of our region.
This is a bad proposal for the city, and the mayor should be ashamed for supporting it. If he really cares about jobs and safety, he should be asking the legislature to provide more funding for education and public safety, two services that we know will produce jobs, instead of emptying our pockets for projects that might be nice, but for which we will pay dearly. MoDOT’s strategy is to buy votes with a wish list of projects. We shouldn’t fall for that.
The economy of our state and the well-being of our citizens should not be left to the devices of a narrow group of special interests whose principal purpose is to profit from our tax dollars while they avoid paying their fair share. A NO vote on Amendment 7 will send a clear message that there needs to be an honest conversation about the best way to create jobs in our state and improve the lives of our citizens.
