tax cut

(Updated Thursday, May 29)

Missouri Gov. Jay Nixon says that local governments stand to lose almost as much money as the state because of a final tax-cutting spree by the General Assembly before it adjourned earlier this month.

All told, Nixon said Wednesday, local jurisdictions around Missouri — from city halls to fire districts, libraries and ambulance services — could lose $351 million in annual sales tax revenue because of “a grab bag of giveaways’’ approved by legislators.

File Photo / KBIA

Business and education groups are again drawing battle lines over a Missouri proposal to cut state income taxes.

Jacob Fenston / KBIA

  Missouri Gov. Jay Nixon is raising new concerns that an income tax cut passed by the Legislature could have "cataclysmic" consequences for state revenues.

The Democratic governor said Tuesday that the bill could eliminate taxes on all income over $9,000, punching a $4.8 billion hole in the state budget.

Republican legislative leaders called Nixon's assertion "ridiculous," ''absurd" and "laughable."

Nixon did not veto the bill Tuesday but has indicated he will do so.

jay nixon
File Photo / KBIA

A tax-cut bill pending before Missouri Governor Jay Nixon would create a special deduction for thousands of business owners.

Nixon has criticized the measure as a giveaway to lawyers and lobbyists. But that may be oversimplifying the issue.

The legislation would phase in a 25 percent deduction for business income reported on personal tax returns. Many lawyers and lobbyists would benefit because of the way their businesses are structured.

missouri house floor
File photo / KBIA

  The Missouri Senate has finally passed a tax cut bill, after different versions were blocked by Republicans who opposed a compromise between the fellow GOP sponsor and Democratic Governor Jay Nixon.  The bill now on its way to the Missouri House would cut the individual income tax rate from 6 percent to 5-and-a-half percent and phase in a 25 percent deduction on business income.  The changes would not take effect until 2017.  The measure is sponsored by Republican Senator Will Kraus of Lee’s Summit. 

File / KBIA

Missouri House Republicans were told they could face primary opposition this year if they voted to sustain Governor Jay Nixon's veto of income tax cut legislation.

Senate floor at the Missouri Capitol
File / KBIA

A new estimate puts the eventual cost of a Missouri Senate income tax cut plan at more than $620 million annually.

The Missouri General Assembly's 2014 session is underway, and the first day sounded a lot like last year's session.

In his opening remarks, House Speaker Tim Jones, R-Eureka, laid out his agenda for this year's regular session: medical malpractice reform, making Missouri a right-to-work state, and cutting taxes.

money
File Photo / Flickr

Wages will rise for Missouri's low-income workers and taxes will fall for some corporations when the new year arrives.

Missouri's minimum wage will increase for about 100,000 workers from $7.35 an hour to $7.50. The increase is a result of an annual inflationary adjustment included in a law passed by voters in 2006.

The state's corporate franchise tax rate also will ratchet down in 2014. That's the result of a 2011 law passed by legislators that gradually phases out the franchise tax by 2016.

missouri house floor
File Photo / KBIA News

A conservative Missouri political committee says it may recruit candidates to run in primary elections against Republican legislators who vote against an income tax cut.

The income tax bill that would eventually reduce income tax rates by about a half of a percent is likely to not be brought up in veto session next month, according to Missouri House Speaker Tim Jones (R-Eureka).

Appearing on St. Louis Public Radio's and the St. Louis Beacon's Politically Speaking podcast, Jones said he currently doesn't have the votes necessary for an override of the governor's veto.

This week Como Explained dives into the tax cut bill the Governor vetoed. It's not dead yet.

We’ve talked about the Republican veto-proof majority on this show before. Well, that’s one of the main causes behind a situation playing out in Jefferson City (and across the state) right now.

Republicans pushed a bill through the legislature this year that would reduce the personal income tax rate by half a percentage point and the corporate rate by three points.  Both would be phased in over the next 10 years. Many Republicans touted the bill as one of their key accomplishments in the 2013 session, and if it becomes law, it will likely be the most noticeable change in the state that comes out of this past session.