Yesterday, the Missouri House joined with the Missouri Senate in an override of Governor Jay Nixon’s veto of Senate Bill (SB) 509. SB509 is the first broad-based tax cut for working Missourians in 93 years. It’s a very modest tax cut that will give every working Missourian a tax cut when it begins to phase-in in 2017. Here are the basic elements of SB509:
- The top income tax rate of 6% will be reduced to 5.5% over five years
- Taxable small business income will be reduced 25% over five years
- An additional $150 million must be collected each year for these reductions to take place
- An additional $500 deduction is provided to those making $20,000 or less
The Governor and his supporters attempted to throw as many mud balls at SB509 hoping some would stick. This tactic has worked for them in the past but not this time and Missourians are better off! Let’s look at the Winners and Losers in this battle.
- The biggest winners in this battle are the 2.3 million hardworking, everyday Missourians who will get to keep more of their hard earned money.
- The over 124,000 small businesses who are the lifeblood of our state’s economy. It’s dubious that any government program can help our economy. There’s no doubt a vibrant small business community can!
- The incoming House leadership team of John Diehl and Todd Richardson. They demonstrated their ability to put together a plan and execute it.
- Speaker Tim Jones who was willing to let the new leadership team work their plan but remained a vibrant and effective force in making the override happen.
- Senator Will Kraus who stayed with the bill even when it looked early on as though nothing would happen.
- The members of the House who voted no on the veto override in September but committed to working on and voting for another tax cut this year.
- Representative Keith English who dared take a look at the claptrap the Governor and others were throwing up about the bill and determined that they were not being truthful about it. UPDATE: Rep English has been stripped of his committee assignments.
- Governor Nixon spent the 15 days he had to veto the bill in his usual attempt to distort and deceive legislators and people on the bill. His Chicken Little approach has worn thin and didn’t work this time.
- The education establishment who showed no independent thought or analysis regarding SB509. They again demonstrated their willingness to not only be part of a false narrative but to be purveyors of it. It’s little wonder that we are seeing the difficulties in our educational system when we have leaders who demonstrate their unwillingness to think for themselves.
- The major newspapers in the state who continue to demonstrate their biases and the fact that nobody really pays any attention to them.
- Big government spending supporters such as the Missouri Budget Project. Their analyses have seldom – being kind – been accurate and never listened to by those who know better.
- Representative Jeff Roorda who has now flip flopped on tax cut votes four times.
The drawback to SB509 is that we have to wait two years for it to begin. The fact that it is now on the books takes the sting out of the wait!