Gov. Nixon defends veto of Mo. tax cut legislation

JEFFERSON CITY, Mo. -- Gov. Jay Nixon is pointing to Missouri's credit rating in defending his veto of tax cutting legislation.

Nixon sent lawmakers a letter Monday that said enacting the tax cuts could jeopardize Missouri's AAA-credit rating. Nixon said credit rating agencies noted the legislation in reports this month.

The legislation would cut tax rates for individuals and corporations and create a new deduction for business income reported on individual tax returns. When fully phased in, it has the potential to reduce state tax revenue by hundreds of millions of dollars. However, some of the tax cuts depend upon continued growth in state revenue.

Supporters of the cuts plan an election-style effort to encourage the Republican-led Legislature to override Nixon's veto.