In her latest newsletter, Rep. Michele Kratky, D-St. Louis, gives an overview of what might happen with SB 509, the tax cut bill, that has now passed both chambers.
Warning that it could jeopardize state funding for local school districts and public colleges and universities, Gov. Jay Nixon on April 16 indicated he will veto legislation the General Assembly granted final approval to hours earlier that would cut taxes by at least $620 million a year and as much as $800 million a year once fully implemented. Governor Nixon vetoed similar legislation last year, and lawmakers failed in an override attempt.
"This legislation will get a thorough review over the coming days and weeks," Nixon said. "But it's worth noting that on its face, this year's reckless fiscal experiment looks a lot like last year's reckless fiscal experiment."
SB 509 would cut the top individual income tax rate from 6 percent to 5.5 percent and create a 25 percent deduction for business income reported as personal income. It would also increase the tax deduction for low-income taxpayers and adjust the state's income tax brackets for inflation.
Nixon has through May 1 to act on the bill. Because it's a Senate bill, an override attempt would begin in that chamber. The Senate originally passed the bill 23-9, with the bare minimum number of "yes" votes needed for the two-thirds supermajority necessary for a veto override. The House of Representatives passed the bill 104-48, with several members absent. Republicans hold 108 House seats, leaving them one short of the 109 needed for an overridewithout Democratic support.
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