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Arson attacks paralyze French high-speed rail network hours before start of Olympics, the Obamas endorse Harris for President; A NY county creates facial recognition, privacy protections; Art breathes new life into pollution-ravaged MI community; 34 Years of the ADA.

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Harris meets with Israeli PM Netanyahu and calls for a ceasefire. MI Rep. Rashida Tlaib faces backlash for a protest during Netanyahu's speech. And VA Sen. Mark Warner advocates for student debt relief.

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There's a gap between how rural and urban folks feel about the economy, Colorado's 'Rural is Rad' aims to connect outdoor businesses, more than a dozen of Maine's infrastructure sites face repeated flooding, and chocolate chip cookies rock August.

Missouri's taxes require more from low and middle-income families

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Wednesday, January 31, 2024   

New data show Missouri has the 35th most regressive state and local tax system in the country.

The Institute on Taxation and Economic Policy found the bottom 20% of earners pay three times more in taxes than the top 1%.

Carl Davis, research director for the Institute on Taxation and Economic Policy, said the state's reliance on property taxes to fund government means some families are paying more to keep a roof over their heads.

"It can make it more difficult to put food on the table, to keep the lights on, all these basic expenses," Davis explained. "It really can create financial stress in the household."

Davis pointed out for those making less than $35,000 a year, nearly 9% of their income goes to state and local taxes, while those earning more than $700,000 pay less than 3%.

Nationwide polls show Americans believe those who make more should pay more, including support for the Billionaire Minimum Income Tax, which would require the wealthiest households to pay a minimum tax of 20% on all their income. Reports show some skirt income taxes altogether.

Davis argued states' regressive tax systems are driving a wedge between the 'haves' and 'have-nots.'

"They reserve their lowest tax rates for people who already have the most," Davis stressed. "The result is even more inequality than where we started."

Davis noted tax systems are a policy choice and it is up to the public and their elected officials to decide whether to continue the status quo. He added Missouri could look to states like Vermont and Maine, which not only offer refundable tax credits, but reserve their lowest overall tax rates for low-income families. Critics of such plans contended they are a form of wealth redistribution and punish the wealthy.


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According to the Tax Policy Center, for higher-income earners, sales taxes consume a lower share of their income than for other households. (Vitalii Vodolazskyi/Adobe Stock)

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