Gov. Jay Nixon and Sen. Will Kraus, R-Jackson County, say they are crafting income tax cut legislation that can get support from both Democrats and Republicans.
Nixon, a Democrat, recently announced his terms on a new income tax cut bill, which include maintaining full funding for the education foundation formula and reducing some of the state’s tax credit programs.
Kraus said this tax cut would not take effect until the state reached a certain level of income. He agrees with the governor that education foundation formula should remain fully funded.
“The bill that we are talking about is a tax cut that is phased in over time,” Kraus said. “It’s got a trigger that guarantees 100 million new dollars every year before we can phase in the next year. And the next year is going to be right around $100 million. So it will be with growth of government that we will pay for this tax cut. We should never cut the core levels of funding.”
An income tax cut bill picked up steam during the last legislative session, but Nixon vetoed the bill when it made it to his desk in June. A Republican effort to override the veto during the September veto session didn’t garner enough votes. The governor rejected the bill because he said it would be too costly to the state and take money out of Missouri classrooms.