JEFFERSON CITY, Mo. (AP) – Missouri’s Republican-led Legislature this year passed tax breaks for goods and services ranging from wheelchairs to yoga classes.
That might mean a showdown with Democratic Gov. Jay Nixon, whose administration says the tax breaks could lead to an $80 million hole in the state budget. Legislative researchers put the price tag at closer to $22 million in general revenue for the fiscal year beginning July 1.
After the legislative session ended earlier this month, Nixon criticized lawmakers for passing tax breaks after approving a $27.3 billion spending plan. He says he might need to balance the budget. Nixon could veto the tax breaks or block spending on other programs.
Lawmakers have argued the cost of the tax breaks is justified to help taxpayers.