(AP)–Missouri senators have passed legislation that would cut income taxes for residents and businesses but raise the state sales taxes.
The Republican-led Senate voted 23-11 Tuesday for the tax overhaul despite calls by Democratic Gov. Jay Nixon to reject the bill.
Supporters contend it is necessary for Missouri to cut taxes to keep pace with recent income tax reductions in neighboring Kansas. But opponents say the sales tax increase could fall hardest on the poor and that the overall loss of state revenue cut hurt funding for schools.
The legislation cuts the income tax by three-quarters of a percentage point and increases the sales tax by one-half cent over five years.
Legislative researchers estimate a net loss to state revenues between $477 million and $670 million once fully implemented.