Section 10 Beginning of Modern Era of Missouri Revenue System: 1920?1940, Post-World War I and Depression Years

• Library: Tax Law 2009

With Missouri enjoying a budget surplus, both parties campaigned for the 1920 statewide elections on platforms of tax reduction and budget cuts. The Democrats, associated with prior tax increases, lost to Republican Arthur M. Hyde, whose percentage margin of victory established a new record. The Republicans also gained control of both houses of the legislature.

Governor Hyde’s inaugural address called for a comprehensive government reorganization and major tax reductions. Big government had crept up on Missourians, resulting in a hodgepodge of boards and commissions. This included the tax system, which was not centralized. Instead, various taxes were administered by their own separate supervising boards.

Governor Hyde proposed reorganization of the executive branch into nine departments. Only three of those departments were created during his administration, and a comprehensive tax collection agency was not one of those. Licensing fees for motor...