If Speaker Richard has is way, we are about to witness redistributionism, not in theory, but in its glorious practice. The Speaker is proposing to “redistribute” $1 Billion dollars from Missouri’s “stimulus” money back to the people.
So let’s get this straight. The borrowed and printed money Missouri is set to receive is going to be redistributed back to the citizens! What will be the qualifications for receiving a check? Here’s an idea. How about giving it back to the federal government or putting it in the rainy day fund? Where is the Show-Me-Institute on this?
Related:
Twitter:
ChadLivengood With the budget a mess & the House changing its stimulus spending plans, there is increasing talk about a special session after May 15
AFPMissouriRT @AFPMissouri: RT @pelopidas: Missouri House Republican could send rebating an average of $500 per taxpayer under Rep. Allen Icet’s plan.
reneehulshofRT @johnrhancock MO House Repubs: “Send $1 Billion Back to Taxpayers!!” Should be interesting to see how ol’ gov Nixon fumbles this one…
0 responses so far ↓
1 Shawn // Apr 23, 2009 at 10:19 am
its Speaker Richard
2 Fed Up // Apr 23, 2009 at 10:48 am
who gets the money, why do they get the money, what one time state projects that need to be do can be completed to avaoid higher costs down the road. Yes road, perhaps repairing the states highways would be a better use of the Billion$$! we sure don’t need more state employees on the payroll
3 Stan Cox // Apr 23, 2009 at 10:49 am
What is wrong with a tax cut? Bigger Government is socialism.
4 David Stokes // Apr 23, 2009 at 1:47 pm
Thank you for the invitation to comment, Scooter. The Show-Me Institute is happy to oblige. We have been discussing this issue around the office today. What we have here is a number of options, most of them poor.
All of this money represents future tax obligations of Missourians, and all Americans, to the Federal Gov. It is going to have to be repaid at some time. So if the legislature knew the breakdown of Missourians future tax obligations, it could redistribute the $1 billion back to Missourians along those lines and that would represent a present value refund of future taxes owed. Similarly, if the money was returned to the Federal Gov’t and not spent by the Feds, that would have the same effect, since it would represent future tax dollars no longer owed by Missourians.
Obviously, though, the legislature has no idea what the breakdown of Missourian’s future tax obligations will be, nor would the Federal Gov’t save the money if it were returned to them. The Feds will spend the money elsewhere, giving Missourians the same amount of future taxes owed while receiving none of the possible benefits of the money spent here. So redistributing the money to Missouri taxpayers, even though you have no idea who will owe what in the future, is probably the best option, even though none of the options is pretty. Some people will get a refund that will represent a large portion of their future taxes owed, and some people will get a refund that will represent a very small portion of their future taxes. But that is probably the better move for taxpayers.
A rainy day fund accomplishes nothing, in my opinion. It neither allows people to spend the money as they see fit (the primary driver of an economy), nor does it accomplish any of the goals of the stimulus and create jobs. Future budget difficulties should be addressed either through the political will to raise taxes or, better yet, cuts in spending.
I can’t take all the credit (or blame, I guess) for this post. It is a summary of discussions with Dave Roland, others here at SMI, and especially Dr. Haslag. Thanks again for the invite to share our views.
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