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Tax Cuts Down to the Wire

May 16, 1996
By: Jack Dolan
State Capital Bureau

On the second to last day of the session, the senate once again failed to vote on a tax refund measure. Jack Dolan has the story from Jefferson City.

Story:
RunTime:
OutCue: SOC

According to the Hancock Amendment, Missouri has about one hundred and fifty million dollars in unconstitutional revenue. Unless the senate approves an alternative on Friday, the money will be refunded to income tax payers on a pro rata basis. But that's not the only way of returning the money under consideration. Other suggestions include reducing the sales tax on groceries, giving a tax break to retired people living on private pensions, and raising the dependent deduction for families with children. Sedalia's democratic senator Jim Mathewson says the last time Missouri refunded taxes with a growing economy, the move came back to haunt the state.

Actuality:
RunTime: 902-905
OutCue: ...three of my counties.
Contents: Mathewson says things were so bad after the last tax refund that he had to get then Treasurer Mel Carnahan to hand write checks to keep the electricity on at family health centers in Mathewson's district.

Late last night the governor, who was huddling with senators trying to work out a compromise, said he was more confident that an alternative was possible than he has been in a long time. But with only one day left in the legislative session, and such an enormous amount of compromise left to be made, it would take a legislative miracle for any of the alternatives to the income tax refund to make it to the governor's desk. The house sponsor of the grocery tax cut, Columbia's Ken Jacob, says "expect a miracle". From Jefferson City, I'm Jack Dolan.