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The Missouri Way
Saturday, September 4, 2010

Several months ago I met a gentleman at my office in Jeff City who addressed me “Congressman.” I quickly corrected him by informing him that this title is reserved for our representatives in Washington D. C. and invited him to address by my first name. After this encounter I realized that my correction was motivated by my hope not to be confused with what is going on in Washington. Recent public surveys indicate that the American’s very unhappy with what is going on in Congress. At the same time, polls indicate that a majority of Missourians agree with the general direction of Missouri State government. Why are attitudes so different? This led me to the conclusion that there are at two ways to run government. There is the “Washington Way” directed by President Obama, Speaker Pelosi and Senate Leader Reid. There is also the “Missouri Way.” The “Missouri Way” is more responsive to our citizens, seeks private solutions for problems and recognizes that the only way out of our current economic problems is to keep taxes low and encourage private investment.

The distinction between these two approaches can be made in several ways: Policies of Taxing and Spending, Size of Government and Life Issues and Traditional Family Values. Over the next few weeks I will discuss these alternative approaches to public service. I will start with Washington’s and Missouri’s approach to Taxing and Spending.

During the first 100 days of his presidency, President Obama signed the $787 billion stimulus bill into law, proposed an eye-popping $3.6 trillion federal budget for the 2010 fiscal year, and created other multi-billion-dollar government programs supposedly to help grease the economic wheels. It took the United States of America 233 years (1776-2009) to amass a national debt of $11 trillion. Yet President Barack Obama's record large 2010 budget deficit estimated at $1.85 trillion and his own spending plans will likely double the national debt over the next 10 years. There seems to be no limit in the Presidents and Congress’s appetite to spend our money and run up large deficits. The most immediate affect of such a reckless policy is to force our national government to raise the rate of interest paid on government borrowings so as to attract lenders. We all fear that the “Washington Way” of spending will lower the standard of living of our children, our grandchildren and generations to come.

As a direct consequence of this spending, the President is now calling for a massive tax increase at the federal level by ending most of the Bush Tax Cuts. The President is using tiresome class warfare arguments by proposing a big income tax increase for the “rich” who have over $200,000 per year income. This tax will hit 50% of all small business income because 85% of small business owners are taxed on profits at individual tax rates. We are all smart enough to know who creates new jobs in America, and it isn't people or businesses that don't make a profit. Americans have also relearned the hard way over the last 18 months that the government doesn't create net new employment. We need not raise taxes in the middle of the worst economic times since the “great depression.” Despite this obvious truth, big taxes and big spending is part of the “Washington Way” of doing things.

The “Missouri Way” is no new taxes. Last year, Governor Nixon made a promise not to raise taxes. Despite this promise, in late December, his tax commission voted to raise real estate taxes on some Missouri farmers by almost 29%. This decision by the State Tax Commission would increase taxes on much of the farmland in our community. The State Tax Commission recommended increasing the productive values for the highest quality of agricultural land. The commission’s proposal would raise taxes on the most productive agricultural land, which generally consists of cropland, by 29 percent and decrease taxes on less productive land. The changes would result in an overall 11 percent tax increase statewide on agriculture land with the impact being larger in the 118th Legislative District. The General Assembly earlier this year passed a Joint Resolution that killed this jobs killing tax increase.

The “Missouri Way” is also a balanced budget. With little help for the Chief Executive, the General Assembly pared $600 million from the original proposed budget. We have made State government more accountable and efficient. Budget challenges continue when the General Assembly reconvenes next January. These challenges will be met to reach a balanced budget without new taxes because this is the right way to run a government.