Governor candidates (left-to-right) Kenny Hulshof, Sarah Steelman and Jay Nixon.

The Columbia Tribune’s Politics Blog reported Thursday that the talk of the governor’s race is taxes.

Both Republican candidates are promising not to raise taxes.

State Treasurer Sarah Steelman’s campaign sent out a press release today announced the first-term statewide official had signed Grover Norquist’s Taxpayer Protection Pledge from Americans for Tax Reform.

Steelman called on U.S. Rep. Kenny Hulshof, R-Columbia, to sign the pledge as well. Scott Baker, a spokesman for the six-term congressman, noted that Hulshof signed the pledge in the past and would sign the pledge again. That, he said, means that he would also promise not to raise taxes if elected governor.

Even lone Democrat candidate Jay Nixon got in on the action.

“Jay won’t raise taxes. During these difficult economic times, when Missouri families are feeling squeezed, that’s the last thing we should be doing,” said Nixon spokesman Oren Shur. “We can change the direction of Missouri, not with new taxes, but with a new Governor who will spend the money available in a more responsible way. That means tax relief for people who need it, such as property tax cuts for seniors and by making college tuition tax deductible.”

Lt. Governor Peter Kinder said he would have been “skeptical” if he were a member of Congress when the stimulus package was pushed through, but rather than question the bill that will send between $600 and $1200 to eligible households this summer he’s decided to embrace the measure.

“If were going to have this means of stimulus let’s make the most of it,” Kinder said during a conference call Wednesday with bloggers.

Kinder is supporting House Bill 2250 which would create a one-time-only sales tax holiday June 27 through June 29. He saw it as the best way to encourage people to shop by getting a break on their sales taxes.

The bill, sponsored by Rep. Mike Sutherland, also includes the proposed Show-Me Green Tax Holiday Act. Citizens would receive a sales tax exemption on energy efficient products costing $1,500 or less during a seven-day period once a year. Exempt products including those that meet or exceed federal Energy Star Program requirements.

Kinder said he’s met some resistance to the bill from the Missouri Municipal League, which usually fights tax abatements. Kinder said they should “stop being the scrooges” and “get with the program.” But he also said if it took adding an opt-out clause to pass the bill he’d acquiesce.

While Kinder admitted formulating economic policies were “above my pay grade”, he said he was very interested in a plan to deal with the dollar’s falling value.

“I happen to believe that mailing a check in these relatively small amounts across the countryside is not an effective stimulus,” Kinder said. “The falling dollar is what’s leading to $110 barrel oil.”

After briefly considering a run for governor, Kinder is seeking re-election this year. Democrat Sam Page will likely be his opponent in November.

Amidst a budget shortfall and cries of mismanagement from both parties, Illinois Governor Rod Blagojevich backpedaled from some of his earlier proposals in his State of the State Address before the General Assembly Wednesday.

Taxes
Blagojevich distanced himself from the Gross Receipts Tax (GRT), a controversial plan to tax all corporations that do business in Illinois. The Governor introduced the GRT last year as a bold initiative to raise state revenues. It has been mired in controversy ever since.

This year Blagojevich promised to cut taxes on businesses that bear an “unreasonable” share of the corporate tax burden. He said that often it is the small corporation or local business that ends up with more to pay.

The Governor proposed a family tax credit and promised not to raise taxes on individual tax payers to pay for the shortfall in expected revenues for 2008.

Construction and Gambling
He pushed for a “Capital Bill” that would begin school, roads, and other public infrastructure construction before the “construction season begins in August.” A “Capital Bill” is supported by both parties, but they cannot agree on how to come up with the revenue to pay for future public construction.

The governor also proposed an expansion to the privatized gaming system in Illinois. He suggested that the state court more private investment in the gambling to increase revenues for the state.

Blago & Obama
Blagojevich’s narrative focused on working families and small businesses in his speech. He referred to the memory of his father clocking in and out of a factory job in an attempt to “call to work” the legislature.

The biggest applause line of the short, lackluster speech came when the governor invoked Barack Obama as a call to Democrats to deliver on their campaign promises of “health care for all in Illinois.” The chamber burst into cheers and whistles at the mention of the popular Illinois Senator’s name.

Missouri is one of only a few states to levy tax on food purchased for consumption at home. This week, Representative Jamilah Nasheed (D-St. Louis) introduced a plan to move Missouri closer to eliminating the sales tax on groceries.

House Bill 2190 would phase out the 1% sales tax on food over a period of six years and replace it with a 1% state sales tax on hard liquor and wine. This proposal would bring the sales tax rate from 1.225% per dollar to just under a quarter of a percent — the lowest of the 14 states that currently charge sales tax on food.

“Our working poor are struggling to make ends meet and we should provide them with tax relief where it will matter most,” said Nasheed. “The money Missourians can save from the reduction of this tax will add up with each trip to the grocery store and it will mean a substantial savings to all of us in the long run.”

The state sales tax on food was last lowered from 4.225% during the 1997 legislative session. The monies generated by the sales tax on food currently fund the school district trust fund. This funding would be replaced by the new sales tax on liquor and wine.

Sales taxes are often considered “regressive” taxes because they tax consumers at a fixed rate, disproportionate to their income.