Governor Nixon Vetoes Missouri Income Tax Cut Bill
On Wednesday, June 5, Governor Jay Nixon vetoed HB 253, a major tax reform bill that would have reduced the state’s income tax rate for the first time in more than 90 years. The legislation would have reduced the state’s top individual income tax rate from 6% to 5.5% and cut corporate income taxes from 6.25% to 3.25% over the next 10 years.
In a statement made on Wednesday, Nixon said the legislation was “an ill-conceived, fiscally irresponsible experiment” that would hurt Missouri’s economy and jeopardize funding for public services. Supporters of the bill touted it as a measure needed in order to compete with the tax cuts of bordering states, such as Kansas and Oklahoma, and say the Governor’s veto means missed opportunities for the state.
The Republican-controlled Missouri Legislature will meet for its annual veto session in September, when it will likely debate this issue. A 2/3 vote of both houses is required to override the Democratic governor’s veto.