JEFFERSON CITY, Mo. – In perhaps the largest blow to Democratic Gov. Jay Nixon so far in his second term, 108 Republicans were joined by one Democrat in overriding his veto of Senate Bill 509.
Nixon said in a statement Tuesday that he will continue to work to manage the budget under the new revenue conditions. The bill is estimated to cut taxes by $620 million, marking the first income tax cut in nearly a century.
“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.”
When enacted, the new law will 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.