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GOP proposes using sales tax money for new tax cuts

JEFFERSON CITY, Mo. — A U.S. Supreme Court ruling making it easier to collect online sales taxes could yield billions of dollars for state and local governments — if they decide to keep it.

Rather than spend the windfall on schools, prisons or other government services, some Republican governors and lawmakers are proposing to give it away in the form of tax cuts.

Wisconsin Gov. Scott Walker, running for re-election this year, has suggested the extra revenue could be used to expand tax breaks for seniors or households with children. Nebraska Gov. Pete Ricketts, also on the November ballot, wants to put it toward property tax relief.

Some Kansas lawmakers are eyeing a reduction in the food sales tax; the Tennessee House speaker wants to lower the state’s 7 percent sales tax rate; and a Missouri lawmaker plans to sponsor an individual income tax reduction to negate the sales tax expansion.

“To just take that revenue would be a tax increase,” said Missouri Sen. Andrew Koenig, echoing the reasoning of many tax-adverse Republicans leery of simply spending or saving the expected influx.

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