JEFFERSON CITY, Mo. (AP) - Missouri Gov. Jay Nixon says an income-tax cut bill passed by the Legislature also could levy taxes on prescription drugs.
Nixon released a written statement Thursday saying the legislation would repeal an existing sales tax exemption on prescriptions, which could cost consumers $200 million annually.
The Democratic governor has previously indicated that he is likely to veto the bill. His previous statements pointed to the eventual loss of hundreds of millions of dollars for state services as a result of the income tax cut.
The legislation was handled by Republican Sen. Will Kraus, of Lee's Summit. Kraus said Thursday that he did not intend to tax prescription drugs. If that's the case, he says Nixon should sign the bill and call a special session so lawmakers can fix it.
JEFFERSON CITY, Mo. (AP) - Gov. Jay Nixon has indicated that he's likely to veto legislation that would cut Missouri income taxes for businesses and individuals.
Nixon said Friday that he has "serious concerns" about the income cut passed a day earlier by the Legislature. He called it fiscally irresponsible and said it could jeopardize funding for higher education, prisons and other government services.
The tax cut was a priority of the Republican-led Legislature and is meant to counteract recent income tax reductions in Kansas.
The Democratic governor estimated that it could eventually drain more than $800 million annually from state revenues.
The measure would essentially cut the income tax in half for businesses and reduce the top tax rate for individuals from 6 percent to 5.5 percent over the next decade.