Nixon says raising sales tax makes Missouri uncompetitive
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Nixon says raising sales tax makes Missouri uncompetitive

Date: February 10, 2011
By: Theo Keith
State Capitol Bureau

Missouri's governor says he's opposed to repealing the income tax and raising taxes on sales.
RunTime:  0:37
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Wrap: Jay Nixon says the the state will need a double-digit sales tax if it stops taking money from workers' paychecks.

But the governor says Missourians will find a way around that.

Just by driving into other states where they can buy things for less.

Actuality:  NIXON7.WAV
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Description: "Especially in a state like Missouri that touches more states, when you're trying to sell goods, raising the sales tax that high makes those goods non-competitive, whether it's cars or stereos or whatever."

Nixon says the state would start levying taxes against prescriptions and insurance.

He called that "problematic."

The second-ranking House Republican says lawmakers should at least look at the proposal.

From the state Capitol, I'm Theo Keith, NewsRadio 1120 KMOX.

Missouri's governor says extending the state's sales tax to cover prescriptions, insurance and more is wrong.
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Wrap: Gov. Jay Nixon says he's against the income tax repeal which would require hiking the sales tax.

He says taxes on prescriptions and insurance and most other purchases could reach 14 or 15 percent. 

Actuality:  NIXON8.WAV
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Description: "When the rubber meets the road, and you get down to the analysis there, that's a significant tax increase on things that, for a lot of good reasons, haven't been taxed in the past."

Nixon says Missourians would drive across the state line to buy big-ticket items to avoid the higher sales tax.

The top-ranking Senate Republican says he's not against the proposal.

But he says he's worried lobbyists will be all over the statehouse fighting to make their industries tax exempt.

From the state Capitol, I'm Theo Keith, NewsRadio 1120 KMOX.

Missouri's auditor says there are so many questions about repealing the income tax that he can't say how much it'll cost the state.
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Wrap: Republican Auditor Tom Schweich says there are nine petitions at the Secretary of State's office to get rid of the state's income tax and raise the sales tax.

He says all of them are so broad that their impact on state revenue is impossible to predict.

Gov. Jay Nixon says he's against the plan, saying the sales tax might reach 14 or 15 percent to make up for lost income tax revenue.

But top Missouri Republicans say they should at least consider putting it on the ballot this session and leave it up to the voters.

From the state Capitol, I'm Theo Keith, NewsRadio 1120 KMOX.

Missouri Digital News is produced by Missouri Digital News, Inc. -- a non profit organization of current and former journalists.