In an expected maneuver, Gov. Jay Nixon has announced he will veto a bill that would have provided tax relief to all Missouri taxpayers and helped small businesses reinvest for growth. With his veto, the governor hurts ongoing efforts to create a favorable tax climate in Missouri and continues to use education as a shield as he obstructs economic development efforts in our state.
“For more than a year now, the governor has been falsely painting this as an education-versus-business issue. That fabrication continued today during the last 15 days as he campaigned against the tax relief. In reality, this is a conservative tax cut that includes provisions to protect our state’s resources for education,” said Daniel P. Mehan, Missouri Chamber president and CEO. “Despite the governor’s opposition to helping small businesses, protecting education and cutting taxes for every Missouri taxpayer, we believe it’s time to make this bill law. We urge the General Assembly to quickly override this veto.”
The bill, sponsored by Sen. Will Kraus, a Republican from Lee’s Summit, would gradually lower the state’s income tax by nearly 10 percent and provide a new 25 percent deduction on an individual’s business income. The relief is targeted at small business and individual taxpayers, not corporations. The changes would not take effect until 2017. The cuts require $750 million in new state revenue to be created before taking full effect.
“The governor’s veto is another example of petty politics standing in the way of economic progress and jobs for Missourians,” Mehan said. “Fortunately, there is a growing coalition of pro-business lawmakers working in Jefferson City. The Missouri Chamber and the business community will stand beside them as they seek an override. Despite the governor’s best efforts to delay and confuse, we feel strongly that the voices of Missouri taxpayers and small businesses will be heard in the end.”