In one of the latest TV ads promoting Amendment 5 a little old lady complains that the government wants to take her money. Supporting Amendment 5 will stop that.
The lady lies.
This week the Institute on Taxation and Economic Policy (ITEP.org) released their review of Missouri Amendment 5. Among their conclusions: the typical Missouri senior citizen would see their total tax costs increase by $365 a year if Amendment 5 passes.
That’s pretty obvious. Most silver citizens – unless meager Social Security and a lack of pension keeps them working at Burger King – already pay little to no state income tax. Our state’s tax code, along with provisions of the Trump One Big Beautiful Bill, dramatically lowered the effective tax burden on middle class retirees. Cutting a tax you don’t pay does not create savings.
Still, after ads with mock NASCAR racing and a talking mule, what did we expect from the Amendment 5 supporters? Certainly not the truth.
Alas, my fingerprints remain on one of the saddest Missouri Ethics Commission determinations ever made. Back in the last Century, Missourians For Tax Justice tried to file a complaint because ads for a sales tax increase lied and strongly implied – using a guy in a two-tone blue uniform with a pointy hat and what really, really looked like a patrol car – that the state patrol supported the tax.
Well, the commission determined that honesty was not required in political ads in Missouri. And, that was not a MEC concern.
Back to now…ITEP determined that the most average (middle quintile) households in Missouri will pay $1,637 more a year in total tax after the Income Tax is murdered.
Don’t worry. The top 1% of households will see their tax bills drop by $40,000 a year.
Remember, Missouri is not a rich state – though we do have some really rich people here. Per ITEP, a fifth of all Missouri households struggle to survive on an income below $24,100 a year.
Lowest Quintile: $0 – $24,100
Second Quintile $24,100 – $49,100
Middle Quintile $49,100 – $79,700
Fourth Quintile $79,700 – $135,400
Top Quintile $135,400 and Up
The top 1% of Missouri households strive to survive on just $689,300 per year or more (sometimes much, much more). I really think they can afford to pay Missouri’s modest Income Tax.
Still, let’s expect the big money people pushing Amendment 5 to run a lot more ads. I hope the talking mule returns but I suspect we’ll see that little old lady telling even more lies. That’s the Missouri Way.
Glenn Koenen