May 6 (Reuters) - A Missouri tax cut bill became law on Tuesday after state lawmakers overrode Governor Jay Nixon’s veto of the measure.
The Democratic governor vetoed the bill last week, labeling it “unaffordable, unfair and dangerous” and warning that it could impair the state’s triple-A credit ratings.
The Republican-controlled legislature sent the bill, which gradually reduces the state’s maximum personal income tax rate, to Nixon on April 16.
The legislation prohibits a rate reduction if the state’s net general revenues have not grown by at least $150 million. It also creates and phases in a 25 percent individual income tax deduction for business income.
Nixon said the measure would decrease Missouri revenue by more than $620 million a year when fully implemented and lead to funding cuts, particularly for education.
“While scaled back from last year’s billion-dollar House Bill 253, Senate Bill 509 fails to prioritize or adequately protect public education at a time when quality public schools are more important than ever to our ability to create jobs in the global economy,” the governor said in a statement on Tuesday. (Reporting By Karen Pierog. Editing by Andre Grenon)