Missouri’s governor says major credit rating agencies agree with his decision that a big income tax cut is a bad idea.
Jay Nixon sent a letter to lawmakers Monday that says overriding his veto of the rate cut could put Missouri’s AAA credit rating in jeopardy. He says Standard and Poor’s, Fitch and Moody’s all say the tax bill could have a significant negative impact on state revenues. However, some of the cuts are tied to an increase in state revenue, or passage of a federal bill that would standardize collection of internet sales taxes.
The governor is already restricting $400 million in next year’s budget, pending a veto override effort from Republicans in September.