Missouri House Approves Income Tax Elimination Plan for Voter Ballot
Missouri House sends constitutional amendment to voters that would eliminate income tax and expand sales tax authority.
JEFFERSON CITY, MISSOURI — Missouri voters will decide later this year whether to grant state lawmakers authority to increase and expand sales taxes in exchange for eliminating the personal income tax, after the Missouri House approved the proposal Tuesday by a 95-59 vote.
The proposed constitutional amendment directs future legislatures to cut personal income tax rates as state revenue increases. It also allows the General Assembly to expand the sales tax to cover all transactions involving goods and services without requiring additional voter approval.
Nine Republicans joined 50 Democrats in opposing the measure, which represents Governor Mike Kehoe’s top legislative priority. Kehoe has until May 22 to decide whether the amendment will appear on the August 4 primary ballot or the November 3 general election ballot.
Governor Frames Plan as Economic Competitiveness Measure
“This is the first step in keeping our promise to make Missouri more competitive, attract jobs and investment, and let families keep more of what they earn from the start,” Kehoe said in a statement released Tuesday. “We look forward to continuing this conversation with Missourians in every corner of our state.”
The governor made eliminating the income tax his signature campaign promise during his State of the State address delivered January 13 in the Missouri House chamber.
Familiar Legislative Debate Over Tax Policy
Republican supporters characterized the income tax as theft during floor debate and argued that eliminating it would attract new businesses and residents from high-tax states. State Representative Bishop Davidson of Republic, who sponsored the proposal, said the income tax “has killed the source of wealth for Missouri’s middle class.”
“It has made the American Dream an American memory,” Davidson said during debate.
The bipartisan opposition coalition raised concerns about shifting the tax burden from income earners to consumers through expanded sales taxes. Democrats and the nine dissenting Republicans questioned whether the plan would disproportionately impact lower-income families who spend larger portions of their earnings on taxable goods and services.
Constitutional Amendment Process Required
Because the proposal involves changing how Missouri collects revenue, it requires a constitutional amendment rather than simple legislation. If approved by voters, the amendment would grant lawmakers broad authority to restructure the state’s tax system without returning to voters for permission on specific sales tax expansions.
The measure builds on previous legislative efforts to reduce Missouri’s income tax burden. However, this proposal represents the most comprehensive attempt to eliminate the tax entirely while providing lawmakers flexibility to replace lost revenue through sales tax modifications.
Missouri currently relies on both income and sales taxes to fund state operations, including education, healthcare programs, and infrastructure projects. Supporters argue that eliminating income taxes will make the state more attractive to businesses considering relocation or expansion.
The timeline for implementation would depend on legislative action following voter approval, with income tax reductions tied to state revenue growth rather than immediate elimination.
