Tax Increase? Or Tax Correction?

St. Louis Post-Dispatch columnist Bill McClellan may have to refigure his calculations regarding his speculation that Gov. Matt Blunt may be Presidential Candidate Blunt in 2012.

A key part of the calculus has been Gov. Blunt's steadfast opposition to tax increases, a story in the Kansas City Star's Jeff City Capital Notebook column may have found a hiccup in the plan.

So [State Rep. Shannon Cooper, R-Clinton, who opposed the late Gov. Holden's move to "close tax loopholes" in 2003] was asked last week what he would call Blunt’s plan to require phone companies and certain rental businesses to pay sales taxes. The change would net $30 million in new revenue for the state.

The Republican governor’s budget staff had called it a clarification of existing law.

“It’s a proper way to pay a tax,” Budget Director Larry Schepker told reporters.

Blunt, who has often promised never to raise taxes, made the same argument Friday — he was just clarifying the law.

So, is Blunt proposing a tax increase?

Cooper looked uncomfortable for a moment, but then replied, “Yes, I would call this a tax increase.”

Speculation about the Governor's future has been rampant; Congressman, Senator, Vice President to Gov. Mitt Romney in 2008, and occasionally, President. The Presidential speculation likely grew from the combination of being the son of a prominent Republican, Rep. Roy Blunt, and a potential precedent in President George W. Bush.

The speculation has continued unabated despite the face the first-term Governor has faced consistently low poll numbers (A SurveyUSA graph shows him consistently in the 30's since May of 2005, with men giving him slightly higher marks averaging around 40).

Update: Virginia Young at the Post-Dispatch has more details on the tax changes; potentially $60 million total, split between state and local goverments. In addition, the lawsuit that led to the correction may force the state to pay back incorrectly-assessed taxes; potentially $300 million or more.

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