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On Wednesday, the St. Louis Post Dispatch reported that Missouri Governor Jay Nixon (D) vetoed HB253. It is the first tax cut for individuals and businesses vetoed by a Missouri Governor in 90 years.
According to the Missouri Budget Project, a lobbying organization for primarily low and moderate income Missourians, the bill would reduce tax collection in the Show-Me state by roughly $700 million dollars a year when fully implemented in 10 years.
At the heart of the bill, a 50% tax cut over five years for businesses that “pass through” income to the owner’s personal return. It also includes a cut for individuals to 5.5% and drops the corporate rate to 3.25% over 10 years.
“Gov Nixon reaffirmed today he favors heavy tax burdens, larger government & greater spending on welfare programs,” said House Speaker Tim Jones (R-Eureka).
Supporters say the biggest benefit of passage of the bill is that it keeps Missouri business in competition with neighboring states like Kansas and Oklahoma, both of whom have reduced income tax rates.
Opponents including Governor Nixon, claim passage of the bill would lead to state budget cuts, among which would be in public education. In his veto statement, the Governor called the tax cuts an “ill-conceived, fiscally irresponsible experiment.”
However, chances of an override of Nixon’s veto are good as Republicans enjoy a two thirds majority in both the House and the Senate. Lawmakers will return to Jefferson City in September for the veto session.
Tags: Jay Nixon, missouri, tax, tax cut, tax increase, taxes, Tim Jones
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