income tax cuts

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.

House Majority Leader Alex Riley will likely become Missouri’s speaker of the House after next year’s elections. But before then, he's responsible for shepherding Republican priorities like eliminating the state income tax.

Under the proposed constitutional amendment sponsored by House Speaker Jon Patterson, sales tax could be imposed “on transactions involving any goods and services." But Patterson said that will be amended to prevent more taxes on fill-ups.

In his 2026 State of the State address, Gov. Mike Kehoe said he wants a statewide vote in November on his plan to phase out the state income tax and allow for taxes on things like monthly subscriptions and digital services. Democrats have questioned whether that's possible without wrecking future budgets.