JEFFERSON CITY, Mo. – Should Missourians get a tax credit for making campaign contributions? A new bill looks to do just that.
Senate Bill 1, sponsored by Sen. Rob Schaaf, R-St. Joseph, has been titled the ‘Taxation with Representation Act.’
The phrase is ‘no taxation without representation’ comes from America’s own history, as colonists in the New World expressed their dissatisfaction with taxes imposed on them by the British monarchy in the mid-1700’s.
Schaaf’s bill would allow Missourians to claim a dollar-for-dollar tax credit on their state income taxes for donations made to state campaigns committees.
Missourians could claim up to $100 per year under the proposed legislation.
To get the “representation credit”, the donor would be required to submit a receipt certified by an officer, candidate or treasurer of the committee.
Schaaf’s goal by filing the bill is to even the playing field in today’s elections, which recently featured five, six or even seven-figure checks being given to political campaigns.
Governor Eric Greitens left his mark on the state’s history, receiving the largest single donation in the history of Missouri, a $2 million donation.
Schaaf contends that the only way to get past those big donations and large amounts of cash on hand is to get the citizens of the state involved.
“It would decentralize the funding of political campaigns, dilute the influence of big-money special interests, and make government more accountable to the people,” Schaaf said.
Currently, only six states in the U.S. allow citizens to claim a tax credit for a donation to campaigns: Arkansas, Minnesota, Montana, Ohio, Oregon, and Virginia.
The credits have not been put in effect without some controversy. Oregon critics complain that the tax credits cost the state nearly $7 million in the years of 2013-2015. In Missouri, it has been projected to cost the state around $4.9 million.
The Committee on Legislative Research estimates there are roughly 4.7 million individuals of voting age in Missouri that could be eligible for the tax credit.
Data provided by the Missouri Ethics Commission for 2016 show a total of 37,202 contributions made to eligible committees.
The report from the Legislative Research Committee says that if all of those contributions were eligible for the maximum tax credit this could have an annual negative impact on total state and general revenue in the amount of $3,720,200 (37,202 x $100).
But testimony submitted to the Senate Committee on Rules, Joint Rules, Resolutions and Ethics by the Brennan Center for Justice at NYU School of Law says that the proposed legislation could reduce corruption, encourage greater election participation by citizens, and open up candidacies to those without personal wealth or wealthy connections.
Their statement argues that the tax credit systems “encourage candidates to spend more time connecting with constituents, and less time dialing for dollars from big money contributors.”
Benjamin Peters was a reporter for The Missouri Times and Missouri Times Magazine and also produced the #MoLeg Podcast. He joined The Missouri Times in 2016 after working as a sports editor and TV news producer in mid-Missouri. Benjamin is a graduate of Missouri State University in Springfield.
