Income Tax

Missouri's legislature is debating a proposal that would gradually eliminate the state's income tax and allow the legislature to hike or expand sales taxes. Economists warn it could add a financial burden to people who can least afford it —and mean less money for schools and transit.

The fiscal note for the proposed income tax resolution indicates billions of lost revenue if sales taxes are not raised.

Organizers are raising concerns that Missouri lawmakers' plan to eliminate the state's income tax will raise costs for lower-income residents and lessen state funding for schools, roads and senior services.

Lawmakers are leaving Jefferson City for a week having sent a total of four bills to Gov. Mike Kehoe's desk, one more than last year at this point.

The Missouri House also approved sex trafficking legislation on Thursday.

The resolution, discussed in a House committee, is a proposed constitutional amendment that, if passed by voters, would allow the legislature to expand state and local sales and use taxes to eliminate the state income tax.

In his 2026 State of the State address, Gov. Mike Kehoe said he wants voters to authorize a plan that would phase out the state income tax and allow for taxes on purchases like monthly subscriptions and digital services.