tax cuts

missouri capitol
Jacob Fenston / KBIA

A proposed tax cut is once again moving forward in the Missouri Senate after it was rewritten yet again. The bill had stalled after its sponsor, Republican Will Kraus of Lee’s Summit, offered a substitute that conformed to conditions that Democratic Governor Jay Nixon said were necessary for him to sign it.

missouri capitol
Ryan Famuliner / KBIA

Missouri senators have endorsed an income tax cut that could eventually waive an estimated $464 million a year in state revenues.

The legislation given initial approval Wednesday would cut taxes by half of the amount originally proposed by a Republican-led committee. It could gradually cut the state's top individual income tax rate to 5 and a half percent from the current 6 percent.

It also could phase in a 25 percent deduction for business income reported on individual income tax returns, and add a $500 tax deduction for lower-income individuals.

A proposed tax cut that conformed to conditions laid out by Gov. Jay Nixon was radically altered Monday in an effort to move the overall proposal forward.

(Updated 12:45 p.m. Fri., Feb. 14)

Missouri Gov. Jay Nixon has unveiled a tentative deal for a tax-cut package made with some Republicans in the state Senate, but his requirements could delay when -- or if -- the cuts go into effect.

Tax cuts and tax credits were the center of attention at hearings conducted by two Missouri House committees Tuesday night.

Andrew Magill / Flickr

Supporters and critics of Missouri tax cut plans both are pointing to the results of recent tax cuts in Kansas.

Several business groups testified during a Senate committee hearing Thursday that Missouri must cut taxes to discourage employers in the Kansas City area from moving across the state line.

But opponents said Kansas revenues and education funding have suffered as a result of its tax cuts.

Kristofor Husted / KBIA

Gov. Jay Nixon continued stumping across the state discouraging state lawmakers from overriding his veto on a tax cut bill.

At the University of Missouri Columbia campus Wednesday, Nixon said the bill could result in a funding slash of $67 million per year for the state’s higher education institutions. The University of Missouri system alone stands to lose $31 million per year. And if a federal online sales tax bill passes, the state number jumps up to a cut of $116 million annually.

Jay Nixon
File Photo / KBIA

Gov. Jay Nixon is pointing to Missouri's credit rating in defending his veto of tax cutting legislation.

Nixon has sent lawmakers a letter that says enacting the tax cuts could jeopardize Missouri's AAA-credit rating. Nixon says credit rating agencies noted the legislation in reports this month.

jay nixon
File Photo / KBIA

Governor Jay Nixon continues to speak out against the tax cut bill he vetoed last week, in the hopes that any override attempt this fall will fail.  

Republicans in the Missouri Senate have scaled back a proposal to cut state taxes in order to emulate tax cuts in neighboring Kansas and Oklahoma.


Governor Jay Nixon (D) has strongly objected to the bill's sales tax hike, saying it would hurt the poor and elderly the most.  That provision has been dropped.  House Bill 253 would now cut the personal income tax rate by half a percentage point and the corporate rate by three points, and phase them both in over the next 10 years.  Republican Will Kraus of Lee’s Summit is handling the measure in the Senate.

The Missouri Senate has given first-round approval to a phased-in tax overhaul designed to help the Show-Me State compete with neighboring Kansas, which recently slashed its tax rates.

Democratic Senator from Missouri, Claire McCaskill, says the so-called sequester will likely go into place this Friday.

On Fox News Sunday McCaskill said the Senate will take action to avoid the spending cuts, she then pointed the finger at the House Republicans for not doing the same.