Missouri Gov. Jay Nixon visited the Missouri Southern campus to defend his veto of HB 253. The bill would implement cuts to a variety taxes including the community development district tax, sales and uses taxes and the transportation development tax.

Essentially, there are two schools thought of  concerning HB 253.

The first view is that of the GOP. The GOP and supporting organizations, such as Club for Growth, argue tax reform is a necessity and long overdue. Additionally, they view that the tax cuts will help make Missouri more competitive when fighting for national jobs and businesses.

The other view is that of Gov. Nixon and groups such as the Coalition for Missouri’s Future (CMF). It is their fear that HB 253 would greatly underfund education and lead to degradation of roads and bridges.

Certainly a case for tax reform could be made; however is the cost more than the state can bear?

According to CMF’s website, when completely phased in, the bill would account for an $800 million hole in the state’s budget. Certainly this would qualify as “radical” tax reform.          Additional changes to tax codes would place a sales tax on prescriptions at the same time that the president’s health care bill already has Americans concerned about medical expenses.

The major reason business’ backed lobbyists are supporting the HB 253 is because it lowers the corporate tax rate by 3 percent, bring it to 3.25 percent.

The CMF said there is no economic need to lower the corporate tax rate, as a survey by the Federation of Tax Administration rates Missouri as having the sixth lowest tax burden in the nation.

It will be interesting to see if the veto gets overturned and how Southern, as well as the state, will handle the ramifications of that decision.

The Chart, for one, is backing Nixon, regardless of political lines.