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The Daily Guide - Waynesville, MO
  • Tax Cuts Will Leave State Billions Short of Revenue Needed for Basic Needs

  • A new analysis by the Missouri Budget Project finds that once the numerous tax breaks passed during
    the 2014 legislative session are fully implemented, Missouri would be
    more than $2 billion short of the revenue needed to fund services at
    FY2014 levels and fully fund the education formula.
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  • A new analysis by the Missouri Budget Project finds that once the numerous tax breaks passed during
    the 2014 legislative session are fully implemented, Missouri would be
    more than $2 billion short of the revenue needed to fund services at
    FY2014 levels and fully fund the education formula.
    "Since the 2008 recession, Missouri has significantly cut
    public health and mental health services, and child protection
    caseloads have skyrocketed," said Amy Blouin, Executive
    Director of the Missouri Budget Project. "Yet as a result of
    this session's tax cuts, Missouri will be far short of being
    able to even maintain this already anemic level of services, and fully
    fund education, as repeatedly promised by legislators;
    Missouri is facing severe budget shortfalls in the future that are only
    made worse by this year's tax cuts, which will cost more than
    $800 million annually by even the most conservative measures. These
    shortfalls come on top of the budget holes facing the state as a result
    of weak general revenue growth since fiscal year 2008 and missed
    revenue projections for fiscal year 2014."
    "Adjusted for inflation, Missouri is already far short of its
    2008 spending power," continued Blouin. "Enacting
    tax cuts at this time is like buying a new sports car when you
    haven't had a raise in years and can't even pay the
    rent."
    The lack of the revenue necessary to deliver quality education, health,
    infrastructure, and other critical services will compromise
    Missouri’s ability to compete for and maintain 21st century
    jobs and will slow the state's economic growth. While the
    biggest tax cut is scheduled to go into effect in 2017, several
    additional budget-busting tax cuts have been vetoed by the Governor,
    though the legislature faces the opportunity to override those vetoes
    in September.
    The full report, Missouri Revenue: Digging Out from a Hole Only to Go
    Over a Tax Cut Cliff can be found at
    http://capwiz.com/mobudget/utr/1/NQUBTWSPZO/OIOPTWSRUL/10445249496
    The Missouri Budget Project is a nonprofit public policy analysis
    organization that analyzes state budget, tax, and economic issues.

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