Missouri voters will decide later this year whether lawmakers can work toward eliminating the state’s individual income tax and replacing it with an increased and expanded sales tax.
The proposed constitutional amendment, HJR 173, sponsored by Rep. Bishop Davidson (R – Republic), would allow future legislatures to cut individual income tax rates as state revenue increases. Lawmakers would also be allowed to expand the state sales tax to “transactions involving any goods and services” without going back to the voters.
Proponents contend that the elimination of the state income tax would make Missouri more competitive with other states, while opponents argue that a higher sales tax would shift the tax burden to lower-income Missourians.
The proposed amendment passed the House by a vote of 95 to 59, with nine Republicans joining Democrats in opposition. Gov. Kehoe must decide by May 22 whether it will be on the Aug. 4 primary ballot or wait for the Nov. 3 general election.