Kehoe’s Push to Eliminate Missouri Income Tax Draws Mixed Reaction

Jefferson City, Mo. (KFMO) - Gov. Mike Kehoe’s State of the State address is drawing sharp reaction at the Missouri Capitol, as he renewed his push to eliminate the state’s income tax.

Kehoe says ending the income tax would put more money back into the pockets of Missourians and help make the state more competitive. He argues Missouri cannot afford to stay the same, noting the state’s population growth has remained stagnant in recent years.

The proposal, however, is raising concerns among some local officials. St. Francois County Clerk Kevin Engler is among those questioning how eliminating the income tax could impact local governments and the services they provide.

Under Kehoe’s plan, voters would be asked to decide whether Missouri should completely phase out the income tax and replace it with an expanded sales tax.

The governor left the details of how that would be implemented to lawmakers to work out next year. Kehoe said the plan could include taxing modern services such as streaming platforms and e-books to generate new revenue for local governments.

He also pledged that any new taxes would be offset by reductions in property taxes, which he called a top priority for Missourians.