Greitens pledges bold tax reform

JEFFERSON CITY, Mo. -- Missouri Gov. Eric Greitens on Wednesday promised the "boldest state tax reform in America" even as new federal and state tax cuts are just taking effect.

Greitens said he wants lower taxes for people and businesses, but he didn't reveal any further specifics in his second State of the State address. He said he'll lay out a detailed plan "early next week."

"It is the boldest state tax reform in America," Greitens said in prepared remarks delivered to the Republican-led Legislature. "And with your help, we will lower taxes for working families and make it easier for businesses to come to Missouri and create jobs."

Greitens' call for tax cuts comes as Missouri is implementing the first phase of a state income-tax cut passed by Missouri lawmakers in 2014 and federal tax cuts signed into law by President Donald Trump are taking effect.

State Budget director Dan Haug has said the federal tax change is expected to cost the state about $58 million for a full fiscal year in lost revenue, and House Budget chairman Scott Fitzpatrick said the state income-tax cut is projected to cost roughly $240 million in the fiscal year that begins in July. Missouri has a more than $27 billion budget.

Considering that lost revenue, Greitens and the legislative budget leaders are predicting modest revenue growth next year of 2.5 percent.

Greitens said tax changes will be done in a way that's "fiscally sound, maintains our state's triple-A credit rating, and does not burden our children with debt."

Both Republican House Speaker Todd Richardson and Republican Senate President Pro Tem Ron Richard have said they're also interested in working on tax policy this session.

But Richard at last week's start of the 2018 legislative session urged caution, saying he wants to avoid the budget troubles Kansas is facing after a sweeping tax cut in the neighboring state.

Greitens also renewed calls for lawmakers to enact term limits for all statewide elected officials and ban lobbyist gifts to lawmakers.

The Republican-led House earlier Wednesday gave initial approval to a bill that would ban gifts, although it includes exceptions such as catered events all lawmakers and statewide officials are invited to.

As the bill makes its way through the Legislature, Greitens asked lawmakers to pledge not to accept lobbyist gifts.

In a Democratic response address, House Minority Leader Gail McCann Beatty slammed Greitens over ethics and transparency. She pointed to an attorney general investigation into Greitens' staff using a texting app that deletes messages after they're read.

She also slammed a "dark money" not-for-profit formed to support the governor's agenda that doesn't have to disclose its donors.

"Gov. Greitens markets himself as a political outsider dedicated to cleaning up state government," McCann Beatty said in prepared remarks. "During his first year in office, however, Gov. Greitens' administration has been stained by ethical failings, disdain for the law and a complete lack of transparency."

McCann Beatty touted Democratic legislation to ban the use of apps that quickly delete text messages and to require more transparency from donors to candidates and inaugural events.