The state House has voted to overturn Governor Jay Nixon’s veto of an income tax bill, SB 509. After the Senate voted earlier Monday 28-3 to overturn Nixon’s veto, House Republicans led a 109-46 vote to complete the overturn.
All 108 Republicans in the House were joined by one Democrat, Representative Keith English (D-Florrisant), who walked into the chamber long enough to cast his vote and then immediately left again. He was not present for votes on Monday or prior to the override vote on Tuesday.
The proposal would reduce the top personal income tax rate of from 6-percent to 5.5-percent over 10 years starting in 2017 if state general revenue growth continues. The bill would also phase in a 25-percent deduction for business income reported on personal tax returns. State revenues would have to keep rising by at least $150-million over their highest point in the previous three years.
The legislature’s fiscal note on the cut says it would reduce state revenue by $620-million annually. Republicans say because the cuts are triggered by increases in revenue, that loss would be offset before any state services and programs have to be cut.
Nixon has argued that the wording of the bill could also result in the elimination of taxes on all income beyond $9,000 annually, resulting in a cut of $4.8-billion dollars annually to state revenue. Republicans legislative leaders have dismissed those concerns as “laughable” and an attempt at distraction.