More thought needed on tax swap legislation

Published 5:00 am Monday, April 3, 2006

A bill that would have reduced the sales tax on groceriespurchased my Mississippians and increased the tax burden on thosewho use tobacco products went up in smoke last week.

By a vote of 29-20 – four votes shy of what was needed – theSenate on Wednesday failed to override Governor Haley Barbour’sveto of the controversial bill.

While a tax decrease is popular, especially on one which hitsthe pocket books of every Mississippian, tax decreases must beoffset by cutting the cost of government or finding new revenueelsewhere.

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The bill vetoed by Barbour supposedly had the offsetting revenuein the form of a tax increase on tobacco sales, but all could notagree the tobacco tax would cover the entire grocery taxdecrease.

Some have heavily criticized the 20 senators who voted againstthe override, but we tend to think these legislators took theproper course and showed leadership in a politically motivatedenvironment.

Too many times in years past have legislators acted out ofpolitical emotion rather than fiscal prudence.

One only has to look back at the Medicaid fiasco during theMusgrove administration. The number of recipients swelled and theentire system was almost bankrupted.

There is no question that Mississippi should find a way toreduce taxes on groceries and, even more, should be ashamed atbeing in the position of having the highest grocery tax in thenation. But the fact is we do and unfortunately that error of thepast cannot be changed quickly.

In our view the tobacco tax and the grocery tax should have beenhandled as separate issues. But in the game of politics where thenext election is more important than fiscal responsibility – guesswhat wins every time?

The governor was right in vetoing the measure, as were the 20senators who voted against the override. Responsible legislativeleaders should use this summer to thoroughly research the idea andfind prudent ways to pay for the reduction of grocery taxes, thenbring it up again next year.

For once, let’s put people ahead of politics!