JEFFERSON CITY, Mo. – Last week, senators debated a bill to appease Gov. Jay Nixon with small tax cuts which eliminated tax credits for low income housing development and implemented larger tax cuts to limit government revenue.
“The more people we get on board with moving a meaningful tax cut is the right path forward,” Sen. Eric Schmitt, R-St. Louis, said. “The reason we have supermajorities is to move important public policy forward and we will see where the Governor stands. I’m very excited to work with leaders like Kent Hampton on improving our state.”
Hampton, R-Malden, was one of 15 House members who chose not to vote to override the Governor’s veto of a tax cut proposal last year, but has looked favorably towards Schmitt’s bill.
“I believe Senator Schmitt’s tax cut proposal is large enough to actually make a positive impact on our state and it also protects the targeted tax cuts to build low income housing which creates jobs and provides a greater quality of life to many of my constituents,” Hampton said.
Schmitt proposed an amendment on the floor two weeks ago to SB 509, sponsored by Will Kraus, R-Lee’s Summit. When it was upheld, the amendment effectively stripped away compromise provisions brokered by Kraus and Gov. Jay Nixon and returned the bill to its origins.
When SB 509 was heard in committee, the bill only included a .1 percent tax cut triggered by $100,000 in increased revenue. The bill cut income taxes down to 5 percent.
Schmitt’s amendment actually cuts taxes even further, down to 4.7 percent.
Nixon told Kraus he would only sign a tax cut of this magnitude if the foundation formula for education was funded and targeted tax cuts were reduced. These changes would have actually brought in more money to the state despite the cut.
Kraus was working to add more language limiting targeted tax cuts within the bill when Schmitt made his proposal that eliminated all of the compromises out of the bill. Proponents feel this move will take any Hammerschmidt ramifications out of play, while opponents think the bill as amended will be vetoed by Nixon.
Schmitt does not care if the bill is vetoed because he believes the majority in both chambers can override the veto.
“I believe if there is an inclusive approach to cutting taxes and if it is done in a meaningful way, there will be many more votes in the House to override the Governor’s veto,” Schmitt said.
