The entire program would be overseen by the Missouri Ethics Commission. The tax applies to a company's inventory, machinery, real estate and accounts receivable. Most previous efforts at public financing called for campaigns to be funded by broad-based taxes. Proposition supporters chose the franchise tax because it was lowered by 33 percent in 1999. Even with the proposition's increase, the tax will be lower than the 0.05 percent that was in effect before this year.
Supporters also say the tax is fair because it excludes small businesses.
The Missouri Chamber of Commerce, however, said it still would affect 18,000 businesses, who are outraged at the idea of losing more than half their tax cut to fund political campaigns. Mehan said that nothing in the proposition would stop a candidate from using the tax money to employ his friends and family, buy a car or throw a party. He said if enough candidates used public financing, they could exhaust the fund. In that case, the proposition requires funding of all candidates to be reduced proportionately so that no additional tax money is needed. But Mehan said such a scenario would prompt calls for an even higher tax on business to keep the campaigns fully funded.