Missouri Lawmakers Advance 4.7% Income Tax Repeal, Leaving Voters to Weigh a $9.2 Billion Shift
Updated
Updated · Springfield Daily Citizen · May 14
Missouri Lawmakers Advance 4.7% Income Tax Repeal, Leaving Voters to Weigh a $9.2 Billion Shift
6 articles · Updated · Springfield Daily Citizen · May 14
$9.2 billion in annual state revenue is at stake after Missouri lawmakers approved a constitutional amendment to scrap the 4.7% income tax and send the question to voters later this year.
The plan is meant to be revenue-neutral, but lawmakers have not specified which goods and services would face new sales taxes or how broad the tax base would become.
Without major base expansion, replacing income-tax revenue would require at least an 8.5% state sales tax; with existing school, park, conservation and local levies, shoppers could face roughly 13% to 15% total rates.
Governor Mike Kehoe backs the measure as a way to boost competitiveness and let families keep more earnings, while Democrats argue it would shift more of the burden onto lower-income residents buying necessities.
Kehoe must choose by May 22 whether the amendment goes on the August or November ballot, leaving voters to decide before many of the tax details are written.
If Missouri cuts income taxes, will an expanded sales tax mean higher bills for most families?
Will scrapping its income tax make Missouri an economic magnet or repeat the disastrous 'Kansas Experiment'?
Missouri’s $7 Billion Tax Gamble: The High-Stakes Ballot to Eliminate Income Tax and Expand Sales Tax
Overview
Missouri is facing a major debate over a proposed constitutional amendment that would eliminate the individual income tax and expand the sales tax base, shifting the state’s main source of revenue from income-based to consumption-based taxation. Currently, about 65% of Missouri’s revenue comes from income tax, while sales tax provides 22%. If the amendment passes, this shift could have significant financial and political impacts, sparking widespread discussion across the state about how public services will be funded and who will bear the tax burden in the future.