income tax cuts

Proponents of eliminating Missouri’s individual income tax, including Gov. Mike Kehoe, say it will make the state more competitive and appealing for businesses and people looking to move to the state. But opponents say that hiking sales taxes will impose more costs on lower-income residents.

Despite the potential high costs, Republicans on a Senate committee advanced the plan on a party-line vote Monday. The bill would place an amendment on the statewide ballot later this year asking voters permission to eliminate the income tax and expand sales taxes.

Missouri’s legislature is debating a proposal that would gradually eliminate the state’s income tax and allow the legislature to hike or expand sales taxes. Economists warn it could add a financial burden to people who can least afford it —and mean less money for schools and transit.

With the 1% earnings tax secured until at least 2031, Kansas City now looks ahead to negotiations with the Royals, looming bond measures for water and housing, and the possible referendum to eliminate Missouri’s income tax.

Labor, reproductive rights, LGBTQ+ advocacy and faith groups in Missouri are testing a shared message against what they see as a growing list of threats from Republican lawmakers — including a plan to eliminate the state income tax and expand sales taxes on goods and services.

The biggest tasks left are the state budget, where Gov. Mike Kehoe has proposed a number of spending reductions, and a Republican plan to eliminate the income tax.

Organizers are raising concerns that Missouri lawmakers' plan to eliminate the state's income tax will raise costs for lower-income residents and lessen state funding for schools, roads and senior services.

The Missouri House also approved sex trafficking legislation on Thursday.

A resolution in the Missouri General Assembly, if approved, would create a process to eliminate the individual income tax as soon as 2032. It would allow for an expansion of some sales taxes to recoup funding lost as a result of lowering or eliminating this tax. Any resolution passed in the statehouse would have to be approved by voters.

A bad national environment for Republicans could affect this year's election cycle, which will feature critical ballot measures like a proposal to repeal abortion rights, restricting citizen-led initiative petitions, and deciding the fate of the gerrymandered congressional map.

About 60% of Missourians would experience a net tax increase under Gov. Mike Kehoe’s plan because of new sales taxes, while households in the top 1% would see an average tax cut of nearly $40,000.

If passed by voters, a proposed constitutional amendment would allow Missouri's legislature to expand state and local sales and use taxes, while eliminating the state income tax. The AARP and Democratic lawmakers said that would shift more of the cost on seniors and low-income residents.