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Kansas is pushing the same proposal. So the border argument is a moot point. Illinois sales taxes are already higher than Missouri. 1 cent is not going to be noticed.

I admire champions for the poor. However confiscation of state taxes leaves less disposable income available to make purchases on necessities. And I repeat, the tax is indexed to federal poverty guidelines so no low income consumers will be adversely affected.
In addition, since lower income consumers tend to purchase used cars they will no longer pay sales tax on that transaction.

Building a house? Taxes are already built in to the overall costs of construction in the payroll taxes withheld and matched by the contractor. Same with the material. Income Taxes are already built into the cost of he material.

Perhaps if a border company don’t have to pay matching withholding income taxes on their employees, they can lower their cost of doing business which would offset .091 cents you are so worried about breaking the bank with.

The tax needs to be revenue-neutral and the advertised rate of 5.11% doesn't do the job. The state already has a deficit. The Mo Fair Tax revenue neutral rate would be approximately 12.5%--which is alot higher than Illinois sales tax. It would cost the average MO family approximately $2200 per year over their current state income tax. However, those families making more than $1-million would see their taxes drop by more than $22,000 per family. It is an appeal to get retirees who don't need to buy stuff to move to MO. TX and FL already get this demographic and MO weather is not as good. Add the local sales taxes to the 12.5% (which could go up if this percentage doesn't prove revenue neutral) and it makes buying stuff in MO a no-go. There is no tax on labor, just materials. New houses would be unaffordable if you add sales tax on materials.

It would be great for my spouse and me. We've paid for our house. We've bought all the cars we want to buy. But we've got four kids and I don't think that, given their current salaries and income potential, they would ever be able to achieve a middle-class lifestyle in MO if they had to add at least 12.5% to everything they buy. Young people can hardly afford rent, health insurance, gas, car insurance, and food.