US EditionGOP Pushes Forward with Proposal to Eliminate MO Income Tax - St. Louis ...
Proposal aims to gradually reduce Missouri's 4.7% top income tax rate by expanding sales tax, which generated 65% of state revenue in fiscal 2025, pending voter approval.
- On Wednesday, March 4 the Missouri House Commerce Committee advanced a proposal to phase out income tax after a 7-3 party-line vote, supporting Governor Mike Kehoe's priority.
- Under the revised proposal, lawmakers would expand the sales tax to more goods and use FY2025 revenue growth to cut the top income tax rate from 4.7% toward 1.4%.
- Current sales-tax math shows that matching income-tax revenue would require raising the sales tax to nearly 13%, as the current state sales tax totals 4.225%.
- The Republican-supported proposal will go to Missouri voters in August or November if approved by the General Assembly, with supporters arguing it tests voter preferences and opponents warning of fiscal risks.
- A notable change would allow taxation of motor fuel for the first time, while giving lawmakers three years to expand sales tax to 'all goods and services' without another vote, shifting how taxpayers decide to spend or save.
12 Articles
12 Articles
Missouri House Commerce Committee to vote on eliminating income tax
JEFFERSON CITY, Mo. (KMIZ) The House Commerce Committee is expected to vote on a bill Wednesday that would eliminate income tax. Income tax elimination is one of Governor Mike Kehoe's top priorities for the 2026 legislative session. Income-tax revenue makes up about two-thirds of the state's revenue. If lawmakers vote yes on the HJB 174, it would cut the state's income tax to zero in 2031 and replace it with an expanded sales tax. Many Republica…
Republicans push proposal to replace Missouri income tax with sales taxes
(Missouri Independent) – The proposal to eliminate the state income tax is moving to the Missouri House floor following a party-line committee vote Wednesday. The 7-3 vote on Republican Gov. Mike Kehoe’s top priority followed a heated discussion where Democrats on the House Commerce Committee accused Republicans of steering the state into a fiscally dangerous future. “You […] The post Republicans push proposal to replace Missouri income tax with…
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