Jacob Lister: The way of taxes

The proposed constitutional amendment limiting the income tax rate to 5 percent as well as limiting increases in state spending is unlikely to prevent tax increases and limit spending growth.

First, only the income tax rate would be limited. The legislature can collect more money by raising sales tax rates and by levying sales tax on new types of transactions, as it did recently in taxing services like haircuts. Other alternatives include raising property taxes or corporate taxes, or charging higher fees for vehicle registration.

As for spending limitations, the legislature could increase overall state spending by cutting spending on local items like schools, foisting the burden of funding them onto cities and counties, and compelling local governments to raise funds to make up for a shortfall in state money.

Although the increase in state spending might be limited, the increase in local spending would be higher, and total spending would increase at a rate greater than population growth plus inflation combined.

If advocates of low taxes and limited spending want these policies in the future, they need to continue to win legislative seats. These amendments would only force future legislatures to follow the letter of the law, not the spirit.

This story was originally published August 29, 2015 at 1:17 PM with the headline "Jacob Lister: The way of taxes."