Gov. Nixon Vetoes Tax Cut Bill

By Matt Lupoli |

Published 05/01 2014 02:11PM

Updated 05/01 2014 10:43PM

SPRINGFIELD, Mo. -- Gov. Jay Nixon (D) has vetoed proposed tax cut Senate Bill 509.

Thursday's veto marks the second time in as many years the governor has vetoed a broad tax cut bill. This year, he traveled the state to say he thinks the move is irresponsible.

"We're a low tax state -- sixth lowest in the country. I've cut taxes four times. Experiments like these especially benefit the wealthy," Nixon told KOLR 10 News in April.

Some Republican lawmakers say this time around, the situation is different.

"We spent the last year, since the last override, working to get a better tax bill that doesn't have any problems with it," Rep. Elijah Haahr said.

Related: Gov. Nixon: $620M Tax Cut 'Not The Way To Move Missouri'

The bill would reduce the max tax rate on personal income from 6 to 5.5 percent in 2017 and allow a 25 percent deduction of business income on personal tax returns. That's all dependent on state revenues being 150 million dollars more than the highest of the three previous years.

Nixon said the bill will cut $620 million from the annual budget and says it could negatively impact the state's economy and education.

"The research shows it is the businesses that do better with cuts."

Missouri State University economics professor Dr. David Mitchell said the cuts may not have much of impact on individual wallets, but could affect business.

"It's just not that much and so from an individual standpoint it's not going to mean that much but you can have a bigger effect with corporate income tax," Mitchell said.

"I plan to vote for the override and I'm fairly confident we will get that override," Haahr said.

Copyright 2016 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Featured Coupon