TAXES

TAXES

Rex Sinquefield is a dedicated free-market economist.  As such, he believes that when something is taxed, the market will produce less of it.  Just as brewers believe that imposition of excise taxes reduces beer sales, Rex believes that taxes on income reduce the production of income, or, put another way, kill jobs.  Missouri rans a dismal 48th in overall economic growth.  Rex wants to bring prosperity to Missouri by reforming tax policy; specifically he advocates eliminating the state’s income tax and the local earnings taxes that are levied in St. Louis and Kansas City.

Tax reform is considered by many to be the most important growth-focused policy issue for our state’s and nation’s economy.  Replacing the personal income tax with a more pro-growth tax structure would put money back in Missourians’ paychecks, which means we can better provide for our families and grow our businesses.

Wealth of States

An Inquiry into the Nature and Causes of the Wealth of States, co-authored by Rex, Art Laffer, Stephen Moore and Travis H. Brown and published in 2014, explains why eliminating or lowering tax burdens at the state level leads to economic growth and wealth creation. The book shows that even states with small populations can benefit enormously with the right public policies. The authors evaluate the impact state and local government policies have on a state’s relative performance and economic growth overall, which they back up with reliable third-party economic data and analysis.

Let Voters Decide

Rex Sinquefield is a key supporter of Let Voters Decide, a nonpartisan coalition working for economic growth and the protection of voters’ rights at the ballot box. The Let Voters Decide coalition supports the Missouri Taxpayer Relief Act, a measure that would eliminate the individual income tax and replace it with a much more benign, pro-growth tax structure.

The proposal is based on a common-sense approach to attracting new residents and businesses to our state. The act also protects working families, because it does not place a tax on the things we need, such as healthcare and childcare. The Missouri Taxpayer Relief Act is a real way to provide a bright future for all Missourians.

Earnings Tax

As the primary financial supporter of the Let Voters Decide committee, Rex is encouraged by that Missouri voters passed a ballot initiative in 2010. The Missouri Earnings Tax Act, also known as Proposition A, was on passed on November 2, 2010.

With the approval of the measure, voters in Kansas City and St. Louis were required to hold a referendum on keeping the tax on earned wages in 2011, again in 2016 and every five years moving forward. If voters reject the levy, the tax would be phased out at one-tenth of one percent per year and cannot be reinstated. If Proposition A had been defeated by voters the current state laws would have stayed the same, allowing cities beyond St. Louis and Kansas City to generate revenue through earnings tax.

Philanthropist and retired investment company executive Rex Sinquefield discusses two studies by PFM Group with Al Wiman, in an engaging five-minute video. One looks at alternatives to the 1 percent earnings tax in the city of Saint Louis. The other looks at areas where the city and Saint Louis County can collaborate on services. The studies were done for the Missouri Council for a Better Economy, a group funded by Sinquefield.