Missouri Senate Bill 146 Proposes Elimination of State Income Tax

Jefferson City, Mo. (KFMO) - Missouri Senate Bill 146 (SB 146) is legislation aimed at gradually eliminating the state’s individual income tax, marking a significant shift in how Missouri would fund state government.

The bill proposes a phased approach to reducing the income tax rate, tying future reductions to specific economic and revenue benchmarks. Supporters of SB 146 say the plan is designed to stimulate economic growth, attract new businesses, and allow Missourians to keep more of their paychecks, while ensuring the state maintains a balanced budget. Under the proposal, income tax cuts would only take effect if state revenues continue to meet or exceed certain thresholds. Lawmakers backing the bill argue this safeguard would protect funding for essential services such as public safety, infrastructure, and education while still moving toward the long-term goal of eliminating the tax altogether.

Critics of the legislation have raised concerns about potential impacts on state revenue, particularly during economic downturns. They warn that reducing or eliminating the income tax could lead to future budget shortfalls or place greater reliance on sales and use taxes, which may disproportionately affect lower-income residents.

SB 146 is part of a broader discussion among Missouri lawmakers about tax reform and the state’s long-term fiscal strategy. As the bill moves through the legislative process, it is expected to generate continued debate over economic growth, fairness, and the sustainability of state government funding.

The proposal would require approval by the Missouri General Assembly and, depending on final language, could involve additional steps before taking full effect.