Missouri Voters to Decide on Income Tax Elimination Proposal

Jefferson City, Mo. (KFMO) - Missouri voters will soon weigh in on a major proposed overhaul to the state’s tax system.

The Missouri General Assembly has approved a proposed constitutional amendment that would gradually eliminate the state’s 4.7 percent income tax while expanding sales taxes on goods and services to help replace lost revenue. The measure is a key priority of Governor Mike Kehoe and will now go before voters for final approval.

The proposal is sponsored by State Representative Bishop Davidson, who has pointed to the state’s track record of reducing income tax rates over the past decade without experiencing revenue declines. Supporters argue this demonstrates Missouri has the capacity to continue cutting income taxes without harming the state budget.

Backers of the plan say eliminating the income tax could make Missouri more competitive economically, particularly in attracting residents and businesses. State Representative David Dolan has emphasized concerns about stagnant wages and economic struggles in rural areas, arguing that changes to the tax code could help stimulate growth.

Opposition to the proposal has come from both Democrats and some Republicans. Critics warn the shift away from income taxes toward expanded sales taxes could destabilize state finances and place a heavier burden on consumers. Concerns have also been raised about whether the state should prioritize income tax elimination over other issues, such as property tax reform.

House Minority Leader Ashley Aune has criticized the proposal, arguing it reflects long-standing efforts by outside influences to eliminate the income tax and questioning its potential political impact in upcoming elections.

The measure passed largely along party lines in the legislature, though a small number of Republicans opposed it in both chambers. It now heads to the ballot, where Missouri voters will ultimately decide whether to approve the constitutional change.