The state netted $351.5 million in general revenue for the month, down 1.4 percent from last year’s $356.4 million. For fiscal year 2005, statewide revenues to date are $4.19 billion, up 2.4 percent from the same period in 2004. Included in those figures is sales tax, which is up 1.2 percent for the year despite having dropped 4.9 percent in February compared to February 2004. Missouri Gov. Matt Blunt said that cuts to the state’s Medicare budget should keep the state from carrying a deficit. But the nonpartisan Missouri Budget Project says the cuts proposed aren’t necessary. The group says Missouri’s $360 million budget gap could be fixed by changing a few of the state’s tax laws. The group suggests several options, including using the state’s rainy day fund, decoupling from the federal estate tax and accelerated depreciation, closing corporate tax loopholes, and eliminating the HMO premium tax exemption. “These options would raise $514 million in new revenue without raising taxes for Missourians,” said Amy Blouin, the budget project’s executive director, in a news release. “This is enough to close the budget gap and ensure that low-income (earning) adults, the elderly and those with disabilities have access to health care through Medicaid.” Missouri Budget Project points out that corporate income taxes in Missouri are the lowest in the country among the 46 states that collect these taxes, and the state’s corporate tax rate for local and state taxes is lower than 30 other states. The group also lists other possible revenue sources, including increased taxes on cigarettes, alcohol and gaming. A statewide survey of Missouri voters indicated that three-fourths opposed cuts in Medicaid spending, and a plurality of voters would prefer to raise taxes rather than cut spending for health care or education. [[In-content Ad]]
