Jefferson City, Mo. — Senator Eric Schmitt, R-Glendale, today announced his disappointment with the governor’s veto of a broad-based tax relief measure approved by the General Assembly at the end of the 2013 legislative session last month.

“The veto of this legislation that would spur growth all across the state is certainly disappointing,” Schmitt said.  “The General Assembly overwhelmingly supported the measure that had been vetted through both chambers over the past years.”

House Bill 253 would have reduced personal income tax rates by 0.5 percent over 10 years. The legislation also would have attached safeguards to the phased-in personal income tax reductions.  The reductions only would have been implemented if the tax revenues collected in the current year exceeded those collected in the prior year by at least $100 million.

The legislation also would have allowed every small business in the state a 50 percent deduction on all business income within five years. 

“The business income deduction for small businesses, which the governor calls preferential, would have spurred investment and employment by our small businesses across the state, which are the lifeblood of our economy,” Schmitt said. “These small businesses drive our economy and a policy decision was made to keep and attract small businesses through this deduction. Unfortunately, this pro-growth policy was not signed into law.”

“Missouri needs a new path, one based on economic growth and prosperity.” Schmitt continued.  “If this bill had been signed into law, we could have sent a message to businesses and individuals across the country – a message that they should come to Missouri to do business.  Instead, we have more of the same policies that have not worked to bring businesses here and to grow our economy.”

“I am hopeful that the General Assembly will override this veto.” Schmitt concluded.  “This legislation would have made Missouri one of the most competitive states in the country for attracting and retaining businesses.”

House Bill 253, termed the “Broad-Based Tax Relief Act of 2013,” would have represented the largest tax overhaul in the state of Missouri since the 1920s.

To read more about legislation carried through the Legislature by Sen. Schmitt, visit his Missouri Senate website at www.senate.mo.gov/schmitt and click on “Sponsored Bills.”