NEWS

Grover Norquist coming to Springfield to push tax cut

Jonathan Shorman
News-Leader

Republicans are bringing in national firepower in hopes of winning a tax cut fight with Democratic Gov. Jay Nixon.

Anti-tax crusader Grover Norquist will appear with House Speaker Tim Jones, R-Eureka, in Springfield today. The stop will come after Norquist and Jones attend a press conference held by Nixon in Cape Girardeau.

At the press conference, Nixon announced his plan to "help small businesses provide health insurance for their employees and ease burdens under the Affordable Care Act" according to a media advisory.

Nixon wants to create a Missouri Health Works program to assist small businesses with healthcare costs. The program would pay a portion 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.

"Under the Affordable Care Act, employees with more than 50 employees must provide affordable health insurance coverage to their employees or pay a penalty. Missouri Health Works will lessen this burden by using the dollars available through Medicaid expansion to pay for an estimated 60 percent of the cost of the health premium for eligible employees," a statement from the administration said.

Nixon's proposal appears contingent upon the legislature approving Medicaid expansion — something Republicans have been either hesitant about or opposed to.

Jones and Norquist, who is the president of Americans for Tax Reform, will hold their own events in support of Senate Bill 509, a tax-cut bill passed a little less than two weeks ago by the General Assembly. They will be joined by Carl Bearden, director of the conservative action group United for Missouri.

Nixon has not yet vetoed the bill but has strongly indicated it must not be allowed to become law. 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.

"This disastrous provision is just another example of what happens when legislation is driven by political gamesmanship rather than thoughtful, transparent policymaking," Nixon has said.

Republicans disagree with the governor's interpretation of the provision and insist nothing is wrong with the bill.

"It will help grow businesses here in Missouri and continue to lead us on the path to prosperity. It will also invite and incentive other businesses to look at Missouri because many of our neighboring states are pursuing these policies of tax reform and reduction," Jones said Thursday.

Norquist is a lightning-rod figure in D.C. most notable for once saying he wants government so small he can "drown it in the bathtub." He also asks lawmakers to sign a pledge not to raise taxes.

Norquist has taken an interest in Missouri politics, tweeting several times over the past few weeks about Senate Bill 509 and the debate over so-called Right to Work legislation.

Sean Nicholson, director of the liberal advocacy group Progress Missouri, said Norquist's tour of the state shows a contrast between what local educators are saying about the potential problems with Senate Bill 509 and what Norquist is saying on the national level.

"The fact that the tour features Norquist, Carl Bearden and the speaker, I'll put my faith in the educators around the state before them any day of the week," Nicholson said.