Missouri weighs eliminating income tax on ballot

What's happened

Missouri lawmakers have advanced a constitutional amendment that would eliminate the state’s individual income tax through gradual reductions tied to revenue growth, potentially replacing lost revenue with a broadened sales tax. The measure will appear on the November ballot unless an earlier election is called.

What's behind the headline?

Key dynamics

The plan seeks to phase out the income tax while expanding the sales tax, framed as a boost to economic competitiveness and business investment. The wording avoids explicit “increase” or “expand,” potentially obscuring the revenue trade‑offs from voters.
Support is driven by lawmakers and business groups, while critics warn of higher costs for households, especially those paying for services not currently taxed.
If approved, Missouri’s budget would rely on revenue growth benchmarks to trigger rate reductions and sales‑tax expansion, creating a built‑in fiscal path that depends on growth projections.

What this means for voters

A yes would authorize gradual income‑tax elimination and a broader sales tax, with five years of potential revenue‑raising to offset the loss in income tax revenue.
Campaigns are focusing on growth and competitiveness, but residents may face higher taxes on services and everyday purchases.

Forecast

The measure could reshape Missouri’s tax mix for a decade or more, contingent on sustained revenue performance and legislative action on the sales tax base.

How we got here

Missouri lawmakers have approved a constitutional amendment directing the General Assembly to eliminate the personal income tax through staged reductions based on revenue growth. The ballot question would also authorize a broader sales tax base for five years, allowing lawmakers to tax more goods and services without another voter vote.

Our analysis

New York Times (Emma G. Fitzsimmons) reports that the Missouri measure would target income tax elimination through gradual reductions and expand the sales tax base. The Independent and AP News provide additional context on ballot language, voter implications, and precedent in other states.

Go deeper

How would this affect your tax bill if the measure passes?
What services might become taxable under an expanded sales tax?
When will voters decide on the ballot measure if an election date is set?