State Senator Sam Graves (R-Tarkio) discusses current issues
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by State Sen. Sam Graves
Over the next several weeks, taxpayers across the state will open their mailboxes to find another refund from the state of Missouri — refunds resulting from revenue collections surpassing the constitutional limits as outlined in Article X.
Article X, or the Hancock Amendment as it is more commonly known, was passed by Missouri voters in 1980. The amendment requires that refunds be made to taxpayers if growth in state revenue exceeds growth in the private sector. For more than 15 years, the state’s revenue remained below the constitutional limit as outlined in the Hancock Amendment. But in 1996, under the current administration of Gov. Mel Carnahan, those limits were exceeded and lawmakers passed legislation that began the process to refund the extra revenue — more than $147 million. Since then, the state has issued three additional refunds, bringing the total to more than $875 million.
Sounds great –and it is. However, there is also a costly price tag to issuing these refunds — the postage alone for the current refund taking place will total nearly $1 million, not to mention the labor and additional costs — all payable by you, the taxpayer.
So, how do you give taxpayers their money back without it costing so much? Simple — you don’t take it from them in the first place. Remember, Hancock refunds are made on a pro-rata basis; that is, the more that is paid in taxes, the larger the refunds will be. Officials are already anticipating another refund next year.
Legislators missed the opportunity last session to provide greater tax cuts to Missourians, thereby eliminating the need — and cost — of issuing the refunds and allowing each taxpayer to recognize considerable savings. It is our job to ensure that taxpayers get the most for their money. While citizens welcome Hancock refund checks, what would be even more appreciated — and respected — is the C-3: Cut taxes, Cut the red tape, and Cut the waste. Then, and only then, will we be giving the citizens of Missouri what they truly deserve.