General Assembly overrides veto of tax-cut bill

The Missouri House voted this morning to override Gov. Jay Nixon's veto of tax-cut legislation under Senate Bill 509, a day after the Senate did the same.

SB 509 is designed to gradually cut the state’s top individual income tax rate to 5.5 percent from 6 percent and phase in a 25 percent deduction for business income reported on personal tax returns.

The Senate's 23-8 successful override vote yesterday was met today with a 109-46 vote in the House. To override a veto, both chambers must pass a motion by at least a two-thirds majority.

Last year, Nixon vetoed similar legislation, which the General Assembly failed to override during the September special session. Opponents of both bills also have noted the potential negative effects on education funding, according to Springfield Business Journal archives.

Nixon, who vetoed SB 509 last week, yesterday visited a Commerce Bank branch in Springfield to caution against the passage of SB 509, saying it could potentially damage the state's AAA credit rating, according to a news release.

Pointing to Moody's Investor Services' recent downgrade of the credit rating in neighboring Kansas, Nixon warned the same could happen in the Show-Me State.

Last week, Moody's downgraded the bond rating for Kansas to Aa2 from Aa1, the same day the state announced April revenue collections were $92 million less than forecasted.

This fiscal year, Kansas has collected $480 million less in general revenue than the same time last year.[[In-content Ad]]