Posted: Jun 5, 2013 3:47 PM by Rebecca Neth
Updated: Jun 5, 2013 6:59 PM
JEFFERSON CITY- Governor Jay Nixon vetoed an income tax cut bill on Wednesday. The rejected bill would've cut personal income tax by 0.5 percent over a ten year period bringing the current 6 percent tax to 5.5 percent.
Senator Will Kraus, District 8, says the amount that businesses are required to pay would have been cut in half over 5 years and the bill would cut corporations taxes by 3 percent over 10 years.
"There is a trigger mechanism in the bill that basically looks back three years," Kraus said. "And if revenue does not grow by $100 million plus the largest of the last three years, the next year phasing would not take effect," said Kraus. He was hoping the bill would pass. "Unfortunately, the Governor believes in keeping taxes higher," said Kraus.
Representative T.J. Berry is the bill sponsor and he would have to initiate an attempt to override the veto in the House. This opportunity would come later in the year. If the bill receives enough votes to override in the House, the bill would go to the Senate.
"My understanding is we would have those votes in the Senate," Kraus said.