Missouri Senate overrides Nixon’s veto of tax cut

JEFFERSON CITY, Mo. – The Missouri Senate on Monday voted to override Democratic Gov. Jay Nixon’s veto of a $620 million tax cut, sending the measure back to the Missouri House of Representatives.

The legislation, Senate Bill 509, received support from all 23 Republicans, and was opposed by eight Democrats.

The bill would reduce the maximum tax rate on personal income from 6 to 5.5 percent beginning in 2017 and allow a 25 percent deduction of business income on personal tax returns. Both provisions would be contingent on state revenues being $150 million higher than the highest of the three previous years.

The bill now heads to the Missouri House, where supporters will have to maintain the support (and have in attendance) all 108 Republicans and the support of one Democrat. Rep. Jeff Roorda, D-Barnhart, voted for the bill initially but has expressed concerns since Nixon’s veto. A source close to House Republican leadership said Monday that they may be able to gain the support of Rep. Keith English, D-Florissant.

The bill has been the subject of a compressed campaign-like effort from both sides of the issue. Nixon has made more than a dozens of trips to cities and towns across Missouri urging residents to call their lawmakers and tell them to oppose the bill. Nixon, speaking in Springfield on Monday, pointed to the recent downgrade of the credit rating for the state of Kansas, which recently cut taxes on a similar scale.

“Kansas’ downgrade demonstrates the very real and dangerous consequences of reckless fiscal experiments like Senate Bill 509,” he said. “For decades, Democrats and Republicans have worked together to keep Missouri on a fiscally responsible path and protect our spotless AAA credit rating – a rock solid foundation of fiscal certainty that Senate Bill 509 would put at risk. Moody’s independent analysis should be a wakeup call for the legislature to set aside these dangerous schemes and work on fiscally-responsible policies that protect public education, our credit rating and our economy.”

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