CHICAGO — A not-for-profit St. Louis group raised the possibility of a referendum drive to challenge income tax cuts enacted recently over Gov. Jay Nixon's veto.
"No decision has been made, but the ramifications of this tax proposal would be so devastating that we are actively looking at every possible option to stop it," said Jay Hardenbrook, public policy director for the Missouri Budget Project, according to published reports.
A successful petition drive would require supporters to raise nearly 100,000 signatures — 5% of voters in six of the state's congressional districts — within the next 90 days. Other groups that opposed the tax cut have also suggested such a move might be considered.
Such a petition is rare in the state's history but the Missouri Constitution includes a provision that permits voters approve or reject acts of the General Assembly via referendum.
The tax cut is expected to total about $620 million when fully implemented. The Republican-controlled Legislature overrode the veto of Democrat Nixon, who slammed the action and warned that the tax cuts, which would be phased in as soon as 2017, would hurt public education and could damage the state's gilt-edged ratings.
The legislation would gradually cut the state's top individual income tax rate to 5.5 % from 6% and phase in a 25% cut for business income. Republicans estimate the total annual cost once all pieces are phased in to be $620 million.
The tax cut would only begin to be phased in starting in 2017 if revenue collections rise by a minimum of $150 million annually from a high benchmark over the previous three years. Republicans have touted the trigger as a protective measure against damage to the state's fiscal foundation.
