Rep. Gatschenberger: Yes on HB 253, you should keep more of your own money

In his latest report, Rep. Chuck Gatschenberger, R-Lake St. Louis, says he disagrees with Gov. Jay Nixon about HB 253 and thinks the legislature should override Nixon's veto.

As you know, the governor vetoed HB 253, the legislature’s tax cut proposal, on June 5.  I have had a great deal of emails and phone calls regarding this bill, the vast majority urging me to vote to override the governor’s veto during the Veto Session in September.

The governor has called the bill “ill-conceived,” “fiscally irresponsible,” and “a reckless fiscal experiment.”  I’m afraid the governor and I differ on this issue.  The bill comes down to a key issue that I think most of us can agree on – you, not the government, know best how to spend your money.  And you should get to keep more of your money through a lower tax burden.

 HB 253 includes a number of safeguards.  The tax cuts are phased in slowly and carefully over a period of 10 years.  During that period of time, our revenues must increase by one billion dollars – revenues must increase before the next step of the tax cut can be enacted.  Breaking down the governor’s numbers, overriding HB 253 would provide an additional $14.9 million to the state in FY 14.  That’s based on projection of $7 million from the cooperative agreement among states for internet sales tax collections, as well as an additional $51.8 million from the tax amnesty provision.  Conversely, revenues would decrease by $5 million with the cut to the corporate income tax rate; $20.7 million from the individual income tax $1K deduction; and $18.2 million from the business income tax 50% exclusion.  In total, that provides a net positive of nearly $15 million.

 And remember, revenue must increase before ensuing tax cuts are enacted.