JEFFERSON CITY – Gov. Nixon’s veto today of House Bill 253 will result in missed opportunities for Missouri.
“Every working Missourian would have received a tax cut, said Dan Mehan, Missouri Chamber President and CEO. “One of the strongest economic development tools that our state could have put to work for our state was taken away today by Gov. Jay Nixon.”
Missourians would have received a $384 million tax cut. Missouri small employers would have seen their taxes reduced as well, and all employers would have their corporate tax rate cut in half.
The Missouri Chamber voiced its concern earlier that Gov. Nixon was considering vetoing the bill because a drafting error made by his Department of Revenue in bill language provided to lawmakers. Commonly known as the streamlined sales tax, the measure has been pushed by Nixon’s Department of Revenue for years and the department gave assurances to lawmakers that this was the appropriate language to implement it. In his State of the State address, Gov. Nixon called on lawmakers to pass this streamlined sales tax bill.
“The Missouri Chamber does not believe that Missouri taxpayers should be punished for an error made by Nixon’s Department of Revenue,” said Mehan. “It is extremely frustrating that one error could cost so much to Missouri taxpayers.”
The legislation was billed by lawmakers as a common-sense approach to controlling the growth of state government. The tax cuts would not go into effect unless the state had revenue growth of $1 billion over ten years.
“The bill contains protections for the state, should the economy take a swing downward,” Mehan said. “And, ultimately, it was designed to slow the pace of growth of government. It was a tool to help Missouri invest economic growth back into our employers and workers, not into the growth of government.”
The Missouri Chamber of Commerce and Industry (www.mochamber.com) was founded in 1923 and is the largest business organization in Missouri, representing almost 3,000 employers, providing more than 425,000 jobs for Missourians.