Jay Nixon

Missouri governor pushing back on newly passed tax breaks

Missouri's Republican-led Legislature this year passed tax breaks for goods and services ranging from wheelchairs to yoga classes, setting up a potential showdown with Democratic Gov. Jay Nixon over what he said could lead to a hole in the state budget.

Nixon said the tax cuts could cost as much as $80 million, but backers say Nixon's cost estimate is overblown. Legislative researchers project that the tax breaks cited by the governor will cost closer to $22 million in the fiscal year that begins July 1.

Nixon said he will closely review the costs and take "actions necessary to keep the budget in balance." Nixon could veto the tax breaks or block other state...