Governor’s Column - April 18, 2008
by Governor Matt Blunt
Celebrating Tax Freedom Day for Missouri Families
Tax Freedom Day in Missouri was April 14. This day marks the first day of the year when taxpayers in Missouri have earned enough income to pay their annual tax burden at all levels of government.
Tax Freedom Day is a powerful reminder of the impact of taxes on Missouri families. Only after April 14 do Missouri families stop paying the government and start working for themselves and their families.
Tax revenues are derived from the work and earnings of Missourians. I want all Missourians to know that I will continue to advocate for lower taxes and fight against excessive spending, because lower taxes mean more money for Missourians to spend and invest, which leads to more growth, more jobs and a higher standard of living for all.
As governor I have been committed to reducing the tax burden for our workers and families.
When I took office three years ago I inherited a $1.1 billion state budget deficit. At the time, some predicted we would not be able to balance the budget without raising taxes. We proved them wrong. Instead of asking Missourians to send the government more of their hard earned money, we fixed a broke and broken budget by doing some common sense things like attacking waste and fraud and creating new efficiencies to save money for the taxpayers.
Our work paid off for Missouri families. Not only did we balance the state budget without raising taxes, we produced three budget surpluses in a row and cut taxes three times.
With the support of leaders in the General Assembly we put an end to the cut on Social Security by eliminating taxes on seniors' Social Security benefits. The Social Security tax was an unjust Social Security cut. Now seniors can keep more of the Social Security they have earned and to which they are entitled. The legislation also provided tax relief for teachers, firefighters, police officers, military personnel, federal employees and railroad workers.
To support manufacturing jobs in our state I signed legislation authorizing a state sales tax exemption for the cost of all energy sources, machinery, equipment and other materials used in the manufacturing, processing, compounding or production of a product and research and development related to manufacturing.
We also lessened the tax burden on Missouri families by signing tax cuts to allow Missourians to deduct the cost of their health insurance premiums from their adjusted gross income. This health care tax cut will help lower the cost of health insurance for Missouri families.
This year I am urging the General Assembly to pass another tax cut package for Missourians. To honor the sacrifices made by Missouri's military veterans I have proposed eliminating all state taxes on their military retirement. The retirement benefits they have earned represent more than ordinary work; they represent a special sacrifice and commitment to our country.
I have also proposed a Show-Me Green Tax Holiday to encourage Missourians to consider environmentally responsible products and reward their choice of these energy-efficient products by making them sales-tax free for one week every year. The creation of the Show-Me Green Tax Holiday will not only save Missouri's families money, but will help lower their monthly energy bills and help protect our environment.
Some treat the income of Missouri families as if it all belongs to the government, and government merely decides how much of it each citizen gets to keep. I see things differently. Government exists to serve the people, not the other way around.
I believe that tax increases not only diminish personal liberty, they stifle economic growth and job creation. Lower taxes mean more money for Missourians to spend and invest, which leads to more growth, more jobs and a higher standard of living for all.