tax cut bill

jay nixon
File Photo / KBIA

  In Springfield Tuesday, Governor Jay Nixon continued to rally support for his expected veto of an income tax cut bill. He questioned the credibility of outside interests that are campaigning for a veto override. The Democratic Governor’s statements came a day after Americans for Tax Reform President Grover Norquist joined Republican House Speaker Tim Jones to challenge Nixon’s arguments on SB 509, which was passed two weeks ago.

missouri house floor
File Photo / KBIA News

Missouri House Democrats are preparing to outline a tax cut proposal, despite their fierce opposition to a Republican tax plan last year.

Rep. Jon Carpenter, a Democrat from Kansas City, was expected to file legislation and release his plan to reduce state taxes on Monday.

Another Kansas City Democrat, Sen. Jolie Justus, has signaled that her party would be open to tax cuts under certain circumstance. She says it is a matter of who benefits from the cuts.

Kristofor Husted / KBIA file photo

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.

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).

jay nixon
File Photo / KBIA

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.