A survey of economic literature finds general agreement among researchers that higher taxes lead to lower economic growth. Stimulus spending can help those hit hardest by a recession to weather the storm, but will not help the economy to recover faster. The best prescription for reviving the economy involves lowering taxes and balancing the budget.
This study provides a review of the academic literature that has examined the relationship between taxation and economic growth, with an emphasis on the taxation of income. The study provides reliable information that may inform policy options. Key considerations in evaluating the role of tax policy in economic growth include: Taxes and economic activity are inversely related; tax policies between jurisdictions are interrelated; taxes and spending go together; and, the impact of taxes is relative.
Economic principles explain why the “principal-agent” problem has led to questionable activity by corporate boards. The same incentives also hold in the public sphere. Although the principal beneficiaries of police service are citizens, the Board of Police Commissioners answers only to the governor. This structure gives rise to potential problems.
Fehlig Brothers Box & Lumber has been in business since 1873, and located in Saint Louis' north side for 55 years. Company president Jack O'Leary said that while some area residents and businessmen are skeptical of the $8.1 billion plan put forward by developer Paul McKee and NorthSide Regeneration LLC, he’s generally for it. However, according to NorthSide’s redevelopment plan, a good portion of Fehlig Brothers is slated for “open space.”
Three houses fall squarely within the boundaries of the recently approved $8.1 billion development of the city of Saint Louis' north side. Of course, about 4,600 other properties also fall within those boundaries, but in the case of the 2200 block of Madison, NorthSide Regeneration LLC, the company behind the development, may be endangering one of its most frequently invoked promises. That promise concerns the use of eminent domain.
David Stokes, a policy analyst with the Show-Me Institute, testifies before the Missouri House of Representatives Job Creation and Economic Development Committee, about the economic effects of pending legislation, House Joint Resolution 81. Stokes argues that the commercial surcharge rates established 25 years ago long outdated, and that legislation allowing local officials to reduce those rates in response to changing economic conditions would provide a strong incentive for businesses to stay in Missouri.
Despite a $50 million shortfall, Metro is pressing ahead with a plan to build new light rail lines. Rather than implementing fanciful new rail construction plans, however, Metro should implement more fiscally sound solutions to the area’s mass transit woes, such new, higher-speed bus lines, which are cheaper and far more adaptable than light rail.
Dave Roland, a policy analyst with the Show-Me Institute, testifies before the Senate Governmental Accountability and Fiscal Oversight Committee and the House Special Standing Committee on General Laws about SJR 25 and HJR 57, also known as the Health Care Freedom Act, which would offer citizens the opportunity to modify the Missouri Bill of Rights to formally recognize their right to decide for themselves whether they will participate in any private health care system. Under this amendment, the government would not be permitted to prevent citizens from offering or accepting direct payment for health care services, and neither could it substantially limit the purchase or sale of health insurance in private health care systems.
A resolution currently under consideration by Missouri’s General Assembly would eliminate the state’s individual and corporate income taxes, and broaden the sales tax instead. The plan includes establishing a low-income rebate program. Despite the possibility of added administrative work in the short term, resources could ultimately be allocated more efficiently.
Missouri’s oral health is among the worst in the nation, partly because of the state’s shortage of dentists. Programs in Alaska, England, Australia, and Canada have had success with dental therapists, who can provide a wide range of dental services at a low cost. Missouri could also benefit from dental therapists if the state’s professional licensing law did not stand in the way.
The Missouri auditor’s office and others have recently suggested either capping or eliminating the amount that can be retained by businesses for remitting sales tax collections. It’s important to remember, however, that the compliance process costs time and money. When the government compels somebody to perform a service, they should be compensated.
The U.S. Supreme Court has struck down most of the federal restrictions on campaign financing. Missourians who believe that moneyed interests carry too much sway with political candidates can try to change the incentive structure by forming a voting block dedicated to casting ballots for candidates whose campaigns spend less money.
On Wednesday, the state's Department of Elementary and Secondary Education (DESE) presented its application for nearly $750 million in federal funding to the state Senate Committee on Education.
Lawrence W. Reed, president of the Foundation for Economic Education, explains the causes of the Great Depression of 1929–1941 and outlines the clear lessons that historical episode provides for modern economic crises.
During December, state tax revenues continued to fall short. According to Linda Luebbering, state budget director, revenues were down more than $170 million in December 2009, as compared to December 2008. The slide amounts to a 21.7-percent decrease. Despite the most recent decline, state officials say they expect tax revenues to bounce back slightly during the next fiscal year.
A much-debated $8 billion development in the city of Saint Louis' north side has been awarded $19.6 million in state tax credits. Those are in addition to city tax incentives, which could total up to $398 million.
The individual health insurance mandate being considered in Congress would violate individual liberties secured by the U.S. Constitution. A proposed amendment to the Missouri Constitution in response to the proposed mandate might be a useful step toward protecting individual freedoms.
Missouri’s economic development and growth rates are chronically below average. During the past 10 years, employment has grown 8.8 percent nationally, while Missouri has boosted jobs by only 6 percent. Economists have provided one explanation for the state’s lagging performance: Missouri’s personal income tax rates.
