Posted: Mar 7, 2013 12:46 PM by KOMU Staff
Updated: Mar 7, 2013 2:00 PM
JEFFERSON CITY - Gov. Jay Nixon is opposing a tax overhaul plan backed by the Missouri Senate because it contains a sales tax increase.
Nixon said Thursday that the proposed one-half cent sales tax hike would be especially harmful to seniors and veterans on fixed incomes and also could also hurt working-class parents trying to provide for their children.
The bill given initial approval Wednesday night by the Republican-led Senate also includes a three-quarters of a percentage point decrease in the state income tax for individuals and businesses. That income tax cut would more than offset the sales tax hike, resulting in an estimated $450 million loss in state revenues once both tax changes are fully phased in.
The legislation needs another Senate vote before it can move to the House.