Missouri Senate Advances Plan to Eliminate Income Tax, Shift to Sales Tax

Jefferson City, MO. (KFMO) - The Missouri Senate has approved a sweeping proposal that would eliminate the state’s personal income tax and replace it with a broader sales tax system, marking a significant shift in how Missouri collects revenue.

The plan passed early Thursday morning by an 18–11 vote, the minimum required for passage in the Senate. The proposal would also eliminate automatic triggers currently used to gradually reduce income tax rates.

State Senator Mike Henderson of Desloge voted in favor of the measure, despite acknowledging the scale of the change. He said the issue should ultimately be decided by Missouri voters.

Supporters argue the plan would benefit working families and strengthen Missouri’s long-term economic outlook. Senate Majority Floor Leader Tony Luetkemeyer said eliminating the income tax would represent the largest middle-class tax cut in state history and position Missouri for future growth.

Opposition came from both sides of the aisle. Democrats strongly criticized the proposal, arguing that shifting to a higher reliance on sales tax would disproportionately impact lower-income residents and seniors on fixed incomes.

State Senator Stephen Webber called the plan regressive and warned it could place a heavier burden on those least able to afford it.

Some Republicans also raised concerns. Senator Joe Nicola questioned the timing of the proposal, saying property tax reform remains a higher priority for his district.

Meanwhile, Senate Minority Leader Doug Beck criticized the overnight timing of the vote and warned the measure could result in increased tax burdens for retirees, senior citizens, and disabled veterans.

The proposal now returns to the Missouri House for consideration of Senate changes. If approved there, the measure would go before Missouri voters later this year as a proposed amendment to the state constitution.