In her latest Capital Report, Mrs. Davis outlined her plan, which would eliminate sales tax on the purchase of automobiles:
It seems strange to me that the government takes a lot of taxes from all of us, and then gives some of our money back to certain businesses in the form of a loan so that they can continue down their tenuous paths. If Washington wants to help anybody, they would give us tax breaks, not loans. Real tax relief is far better than a loan. You may remember that the last time Congress discussed a bailout, members urged each other to call it a “rescue.” People trying to rescue others don’t set them up with loans that will add to already hefty financial burdens.
My “auto bailout plan” starts by getting rid of the personal property tax in the state. Many states do not charge this personal property tax, and it is time for it to go away in Missouri. If the auto manufacturers did not have to pay millions of dollars in taxes every year for the equipment they need to make cars, it would be a far greater relief than a bailout loan of the same amount.
The second benefit from doing away with personal property taxes is that it would provide an incentive to consumers for buying new cars. A lot of people will not purchase a new car because they hate the idea of paying hundreds of dollars for it again and again each and every year they own it. We all can understand sales tax, which is a one-time event, but to have to pay taxes annually on the same item retards the sales of newer cars. Imagine how much it would help the auto industry if people felt like buying new cars again.
Best of all, we can deal with these issues on the state level, apart from whatever is happening in Washington D.C. This proposal is important enough to me that I am starting an effort to get this measure on the ballot. If I can get some agreement between the House and the Senate, we can put this on a statewide ballot for the voter’s consideration.
With the correct economic principles, we can take care of our own people better, more efficiently and in a manner that allows them to preserve some of their dignity.