The Missouri House this week passed legislation (SB 26) that would lower income tax rates for individuals and corporations while increasing the state sales tax. According to House legislative staffers, the House-passed bill would cost the state about $438 million annually when fully implemented in 2019. The Missouri Budget Project, an organization that advocates for lower and middle income taxpayers, reports that the state would lose far more, as high as $986 million annually. The bill must now return to the Missouri Senate for that body to consider the changes made by the House. Governor Nixon has said he opposes the bill.
The House would need 109 votes to override a governor’s veto; the bill, however only mustered a majority of 90 in the vote this week.