Governor Jay Nixon says a clause in the income tax cut bill he vetoed could have triggered a $1.2 billion run on the state treasury because the cuts could apply retroactively to the last 3 years.
Attorney General Chris Koster agreed with Nixon's legal analysis this past week, as Republicans consider overriding the veto. But the dollar amount projection remains largely hypothetical.
The Missouri bill would trigger a one-half of a percent reduction in state income tax rates if the federal government enacts a measure making it easier for states to collect online sales taxes. That bill has stalled in the U.S. House.
Originally published on Fri August 30, 2013 4:35 pm
So far, there has not been a ground swell of support for the idea of a special legislative session in Missouri to pass an alternate version of the tax cut bill vetoed earlier this year by Governor Jay Nixon (D).
A new report by the Department of Mental Health, or DMH, found the department would have to cut 87 million dollars annually. Federal matching funds would also be lost, which brings that number to approximately $164 million per year.
Speaking at the Autism Center for Diagnosis and Treatment at Southeast Missouri State University, Nixon said that would permanently undermine the state’s ability to fund mental health services.