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Lawmakers Overturn Tax Cut Veto; Bill To Become Law

JEFFERSON CITY, Mo. -- The Missouri House voted 108-46 Tuesday to overturn Gov. Jay Nixon's veto of tax cut Senate Bill 509.
JEFFERSON CITY, Mo. --  The Missouri House voted 108-46 Tuesday to overturn Gov. Jay Nixon's veto of tax cut Senate Bill 509.

The House's vote took place just after Tuesday's session convened. The Senate voted earlier Monday 28-3 to overturn Nixon’s veto.

All 108 Republicans in the House were joined by one Democrat, Representative Keith English (D-Florrisant), who walked into the chamber long enough to cast his vote and then immediately left again. He was not present for votes on Monday or prior to the override vote on Tuesday.

"We fulfilled one of our major promises to the Missourians who sent us here today," Speaker of the House Tim Jones (R) said.

The proposal would reduce the top personal income tax rate of from 6-percent to 5.5-percent over 10 years starting in 2017 if state general revenue growth continues. The bill would also phase in a 25-percent deduction for business income reported on personal tax returns. State revenues would have to keep rising by at least $150-million over their highest point in the previous three years.

"(It's) the first tax reform, tax relief measure, that this state has seen in nearly 100 years," Jones said.

In an interview with Gov. Jay Nixon on Monday, he told KOLR 10 News that he thinks SB 509 is a risky experiment.

"They modeled this bill over what Kansas did, and Kansas was just dramatically downgraded," Nixon said.

Springfield Rep. Charlie Norr (D) said he thinks the bill deserved more consideration before the vote.

"We weren't allowed to debate it today," Norr said. "We should've had more time to discuss it. That didn't happen. We came in this morning, they said the prayer, pledged the flag and banged the gavel and said pick a vote."

Missouri State University political science professor Dr. Brian Calfano said the override comes as no surprise.

"It's the sort of thing with an election year," Calfano said. "If you're a conservative republican it strengthens your view as being someone who is tough on taxes, tough on spending."

The legislature’s fiscal note on the cut says it would reduce state revenue by $620-million annually. Republicans say because the cuts are triggered by increases in revenue, that loss would be offset before any state services and programs have to be cut.

The bill will also adjust Missouri's tax brackets for inflation.


Reaction:

Gov. Jay Nixon
today issued the following statement regarding the legislature’s override of his veto of Senate Bill 509:

“Missouri families and businesses know that public education is the best economic development tool there is, and that is why I vetoed Senate Bill 509,” Gov. Nixon said. “While scaled back from last year’s billion-dollar House Bill 253, Senate Bill 509 fails to prioritize or adequately protect public education at a time when quality public schools are more important than ever to our ability to create jobs in the global economy.  And while its authors may have delayed its impact, Senate Bill 509 remains a very real threat to the principles of fiscal discipline that have helped us maintain our spotless AAA rating for decades.  As I have from Day One, I will continue to manage the budget with the resources available and keep our state moving forward.”


Missouri House Speaker Tim Jones
issued the following statement regarding the legislature’s successful override of Governor Nixon’s veto on a bill to lower Missouri's tax rate on its workers and small business owners.

Today, we showed Missourians why they elected a Republican supermajority to the Missouri legislature: we pass important, conservative policies.  Updating our tax laws is an essential, pro-growth reform which will improve our economy by allowing small businesses, farmers, and families across our state to keep more of their own money.  Our high tax rate has been harming our economy, making our state less competitive and resulting in thousands of Missourians leaving our state for low-tax states like Florida and Kansas,” said Speaker Jones.

“Missouri’s economy has become stagnant under Governor Nixon’s watch.  The median income has dropped by more than $1,500, and all too often the news reports that yet another Missouri company has moved just across the border to take advantage of more business-friendly policies.  Passing this common sense tax reform into law is the first step toward transforming Missouri into a pro-growth state.”

 

Charles E. Smith, English teacher and Missouri National Education Association president, issued the following statement in response to the Missouri Legislature’s vote to override Governor Jay Nixon’s veto of Senate Bill 509 (SB 509):
 
“SB 509’s $620 million dollar giveaway to lawyers, lobbyists and special interests diminishes the ability of our state to meet its minimum obligation to fund our local schools.
 
As we’ve seen in Kansas risky tax schemes fail to create jobs but lead to drastic cuts in vital services. In the end the burden of the cuts will be borne by students, parents, and our local school districts.”


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