Norquist: Tax cut bill will become law

Divisive tax-cut legislation passed in Missouri will become law, national anti-tax crusader Grover Norquist said in Springfield today.

Norquist, president of Americans for Tax Reform, joined House Speaker Tim Jones, R-Eureka, in speaking to reporters in Cape Girardeau and locally in support of Senate Bill 509.

"We're now looking at a very solid bill that puts Missouri on the right direction to make it more competitive with neighboring states and other states," Norquist said.

Democratic Gov. Jay Nixon has not yet vetoed the bill but has declared the legislation must not be allowed to become law. Norquist today took the polar opposite view, arguing that it will become law.

Norquist said supporters will have the necessary votes to override Nixon's expected veto. Although the bill passed with less than a veto-proof majority in the House, Republicans who were absent for the vote are expected to vote yes on an override. If a single Democrat also votes yes, then supporters will have the needed 109 votes.

But Norquist said even if that does not happen, special elections over the summer to fill vacant seats in the House will likely send Republicans to the General Assembly, allowing an override of the veto without Democratic support during the September veto session.

The bill reduces the top personal income tax rate of 6 percent to 5.5 percent by 1/10 of a percent each year beginning in 2017, provided that the state's general revenue continues to grow. A fiscal analysis by legislative researchers found the bill will reduce revenue by about $620 million a year once fully implemented.

Last week, Nixon said he had found a provision in the bill that would eliminate taxes on income above $9,000 a year. If true, the legislation would reduce the state's revenues by about $4.8 billion a year, according to the administration's analysis.

Republicans dispute this and have provided their own legal analysis that argues Nixon's claim is not true. Norquist said Nixon's opposition to the bill is driven by "spending interests" who feel threatened.

"There's some very powerful, organized interests in Missouri but (also) in all 50 states, and they have great big buildings down in the state capital and they love to spend other people's money," Norquist said.

However, opponents of the legislation say Norquist is an "outside extremist."

"Who are Missourians going to trust, an extremist from outside the state with an ideological agenda, or the tireless leaders of our communities, who devote themselves every day to educating our children, ensuring that mental health needs are met, and who strive to ensure that our communities are great places to raise a family?" a statement from the Coalition for Missouri's Future, highlighting opposition to the bill from educators, said.

Norquist's appearance in Missouri came as Nixon put forward a new effort in Cape Girardeau to convince lawmakers to expand Medicaid. Nixon wants to create a Missouri Health Works program to assist small businesses with healthcare costs.

The program would pay a portion, likely about 60 percent, of an employers' health insurance costs for their employees making below 138 percent of the poverty level, according to a news release. Businesses with fewer than 150 employees would be eligible.

The viability of Missouri Health Works appears contingent upon Medicaid expansion, which Republicans — particularly in the Senate — have opposed. If Missouri expands Medicaid to 138 percent of the federal poverty level, it will become eligible for federal money to ultimately pay for about 90 percent of the cost of expansion.

"Small businesses in Missouri are getting squeezed between sky-high health insurance costs and new requirements under the (Affordable Care Act)," Nixon said in a statement. "Unfortunately, the Missouri legislature's inaction on Medicaid has taken this serious problem and made it worse by sending Missourians' tax dollars to other states."

Jones told the News-Leader the General Assembly has been debating Medicaid reform for the past year and a half. Jones said Nixon's plan, coming late in the session, indicates he is not serious about reform, or at least does not want to work on the legislation until next year.

"I find it a bit disheartening that he came up with this proposal with three weeks left in the legislative session," Jones said.