Updated — Gov. Jay Nixon has released the details of the tax cut compromise negotiated with Sen. Will Kraus. The statement reads, in part:
The legislation that Sen. Kraus intends to put forward would provide a .25 percent reduction to the individual income tax rate effective only after the K-12 foundation formula is fully funded and only after $200 million in revenue growth. The legislation would provide an additional .25 percent reduction to the personal income tax rate effective after legislation is enacted to reduce low income housing tax credits to $110 million annually and historic preservation tax credits to $90 million annually.
JEFFERSON CITY, Mo. — While details have yet to be released, Sen. Will Kraus, R-Jackson County, told The Missouri Times today that after months of negotiations with Gov. Jay Nixon, he will be introducing a legislative package in the senate that reflects a compromise reached with the Democratic governor on tax cuts.
Nixon vetoed a tax cut bill last year, drawing the ire of House and Senate Republicans. Kraus, who sponsored tax cut legislation last year and this year, said that he was “extremely pleased,” that Nixon was been willing to work with his office.
“There have been a lot of discussions between myself, the Governor and the Governor’s staff,” Kraus said. “And we now have a deal that, if my senate colleagues and members of the House can agree with, he will sign into law.”
Kraus declined to indicate specific measures in the bill, saying he had yet to show the language to his fellow senators or receive feedback from the caucus as a whole. But Nixon told reporters at a Missouri Press Association event today that he had certain demands for any tax cut package. Among them, Nixon indicated he would sign an income tax cut of up to one-half of a percentage point if the measure included full funding for the foundation formula and reform of some of the state’s most expensive tax credit programs. Nixon also said any deal should be contingent on at least $200 million annually in tax revenue growth.
Kraus declined to confirm or deny if any of these demands were met in his package, but hinted that at least some of the Governor’s demands would likely be met.
“I can’t release the details without hearing from my fellow senators first and foremost,” Kraus said. “But I can say that this is something he has told me he will sign if it gets to his desk.”
Kraus said he was hoping to be able to introduce the language sometime early next week and that it would likely come as an amendment to SB509, an income tax bill that he is sponsoring.
Collin Reischman was the Managing Editor for The Missouri Times, and a graduate of Webster University with a Bachelor of Arts in Journalism.