Nixon expresses 'serious concerns' over tax cut plan, hints at veto

The Missouri House gave final approval to the tax-cut legislation on Thursday, sending it to Nixon’s desk.

But in a meeting with reporters today, Nixon said he has “serious concerns” about the proposal, which would reduce state tax collections by more than $700 million a year when fully implemented in 10 years.

“Taking more than $800 million out of our state budget – the equivalent of wiping out all public higher education, or closing all our prisons, or eliminating the Department of Mental Health and the services it provides – is not the fiscally-responsible approach,” he said.

Supporters of the tax cut claim it will put more money in people’s pockets and help the state compete with its neighbors, including Kansas and Oklahoma – both of which have recently reduced their income taxes.

But opponents say the hit to state revenues will force cutbacks in areas of the state budget, including public education which is already underfunded yearly.

Nixon, a Democrat, referred to the plan as a “reckless, Washington-style gimmick,” but he stopped short of saying outright whether he plans to veto it.

“We’ll review the bill carefully,” he said. “There may be other parts of it that are worth noting at the time I take my constitutional responsibility.”

“At this time, I’m certainly not looking at it with an eye to add it to the structure of Missouri government,” he added.

Among those other provisions contained in the bill, the legislation would allow Missouri to tax online sales if Congress passes the Streamlined Sales Tax Act and it would establish a three-month tax amnesty period in the fall to boost state revenue.

The GOP-controlled Legislature could try to override the governor during its September veto session, but Thursday’s House vote approving the bill fell six votes short of the two-thirds majority needed for an override.