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Gov. Nixon opposes plan to create Missouri sales tax

JEFFERSON CITY, Mo. (AP) - Gov. Jay Nixon is opposing a tax overhaul plan backed by the Missouri Senate because it contains a sales tax increase.

Nixon said Thursday that the proposed one-half cent sales tax hike would be especially harmful to seniors and veterans on fixed incomes and also could also hurt working-class parents trying to provide for their children.

The bill given initial approval Wednesday night by the Republican-led Senate also includes a three-quarters of a percentage point decrease in the state income tax for individuals and businesses. That income tax cut would more than offset the sales tax hike, resulting in an estimated $450 million loss in state revenues once both tax changes are fully phased in.

The legislation needs another Senate vote before it can move to the House.

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