FHForward is advocating you vote NO Amendment 5, which swaps the income tax for unknown hikes in sales tax. Below are the key reasons this legislation is not fiscally responsible:
It suspends constitutional protections on sales tax for five years, giving the legislature sweeping authority over what gets taxed and by how much. Specifically, these protections are at risk:
The Hancock Amendment, which limits new taxes without voter approval
The 2016 restriction on new taxes on services
The ban on taxes for real estate transfers, such as property sales
Projections show:
Those who make more than $300K annually will benefit, but 80% of Missourians could end up paying more in sales tax than they currently pay in income tax
Those now exempt from income tax would pay drastically more: retirees, veterans, active duty military, retired teachers, and railroad and public pension recipients
Sales taxes won't generate enough revenue to replace the income tax, causing massive shortfalls—including up to $1.4 billion less per year for public schools