Pearce Opposes Sinquefield's Mega Sales Tax Fantasy

Sen. David Pearce (R-Warrensburg) had few kind words for the Rex Sinquefield mega sales tax hike proposals this week at a meeting with his hometown Chamber of Commerce.  Pearce said the plans to expand and hike the state sales tax would "have a tremendous impact," and still not be revenue neutral.  As reported in the Daily Star-Journal:

Pearce said that if the fair tax passes, then churches, schools and non-profits would have to pay state sales taxes - something they do not do now. They would have to pay to make up part of the difference between the amount collected now by income tax versus sales tax.

"It would have a tremendous impact," Pearce said.

Even so, the addition of groups paying sales tax still would not equal state revenue losses if the fair tax passes. Pearce said estimates are that the tax would have to rise another 5 to 12 percent beyond the present level.

If the House passes the proposal, Pearce said, the fair tax likely faces a cool reception in the Senate.

"I don't see a lot of momentum over in the Senate for a fair tax," he said.

h/t JohnCombest.com