Missouri proposal would end tax break for seniors, disabled

JEFFERSON CITY, Mo. (AP) -- Tax breaks for low-income seniors and disabled residents who live in rental housing would go away under legislation a panel of Missouri lawmakers voted to advance Wednesday as the state deals with a budget crunch.

The bill's sponsor, Rep. Scott Fitzpatrick, who leads the House Budget Committee, said eliminating the roughly $55 million-a-year tax break could spare proposed cuts to services for those groups.

The proposal comes as Republican Gov. Eric Greitens, who took office in January, has cut roughly $146 million to balance this year's budget. That's on top of about $200 million cut by former Democratic Gov. Jay Nixon before he left office.

Under Fitzpatrick's bill, the additional tax revenue would be set aside for help for low-income seniors and people with disabilities.

"This is obviously a very challenging budget year," the Shell Knob Republican told colleagues in the House Budget Committee. "This is not the first thing cut."

Greitens originally recommended cuts to in-home and nursing care services in the next fiscal year beginning July 1, although he later asked lawmakers to use unexpected money from a tobacco settlement soften the hit.

But lawmakers are considering other options. They have until May 5 to pass their own version of the new budget, which Greitens can fully or partially veto.

Democrats and advocates for people with disabilities slammed Fitzpatrick's proposal to eliminate the tax breaks as unnecessary.

"We are not looking hard enough at other places to tighten our belt," said St. Louis Rep. Michael Butler.

Paraquad President and CEO Aimee Wehmeier called it "unethical."

"It's not a significant amount," she said. "But for someone on a very limited income, that could be the difference between someone being able to live independently and not live independently."

This is not the first time the Legislature and other policymakers have proposed eliminating the tax break for low-income seniors and disabled residents.

Nixon in 2013 supported cutting it, but later said it should be part of a more expansive overhaul of state tax policy and ended up vetoing a narrow bill that would have ended only the renters' tax break.

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