The lines have been drawn between the Governor and Republican legislators on the tax cut bill Governor Nixon is likely to veto.
Nixon’s chief counsel, Ted Ardini, says the bill eliminates the top income
bracket–which would eliminate about two-thirds of state government’s income, arguing, “Once you eliminate the top tax bracket, which is ‘over $9,000,’ the top tax bracket becomes ‘over $8,000 but not over $9,000.’ As a result, if your Missouri taxable income is greater than $9,000, you have no tax bracket and hence you have no tax rate.”
House Republican leader John Diehl says that contention is “silliness,” and a “deception.” He says the bill orders the Director of Revenue to adjust the tax brackets as the top tax rate declines. “The bill…is self-effectuating. The director is to rewrite the tax tables to implement the purpose and the language of the bill.” he says.
The contentious part of the bill establishes the tax table with the percentages of various levels of taxable income. The wording causing the problem is in the last two brackets and in paragraph 2(4).
