Missouri has seen an explosion of new taxing districts during the past decade. These districts are used as vehicles to focus public tax dollars toward private purposes. They include the use of tax increment financing (TIF), Chapter 100 bonds, transportation development districts (TDD), community improvement districts (CID), and more.

These programs defeat the purposes that supporters usually cite in their favor: encouraging employment and helping Missouri compete. In short, tax credits are a form of wealth redistribution — we all bear the cost, but only special interests and favored industries benefit.

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 Stokes argues that the commercial surcharge rates established 25 years ago long outdated, and that legislation allowing local officials to reduce those rates in response to changing economic conditions would provide a strong incentive for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.

David Stokes, a Show-Me Institute policy analyst, makes recommendations for provisions that should be included in the proposed Franklin County charter.

Thank you for the opportunity to submit my comments about the upcoming sales tax vote in Saint Louis County, the proposed service cuts if the tax increase does not pass, and more. This testimony follows up on comments I made last month, at Metro’s invitation, at the Missouri Public Transit Association’s convention. The primary point of this testimony is not to comment on the proposed service cuts, but to suggest alternative means of financing and providing mass transit in general. These ideas will hopefully be given consideration, whether or not voters pass the sales tax increase, although they may become imperative should the measure be defeated.

In June, Show-Me Institute policy analyst David Stokes submitted this testimony to the Saint Louis County Capital Investment Blue Ribbon Commission, about Saint Louis County's capital investment proposals. He argued that it's necessary to consider the economically harmful aspects of tax increases alongside the infrastructure needs that those increases are proposed to finance.