Summary
Missouri Governor Mike Kehoe plans to propose eliminating the state's income tax by 2026. This change might lead to adjustments in other taxes to compensate for lost revenue. The proposal is set to be introduced when lawmakers start filing new bills in December.
Key Facts
- Governor Mike Kehoe wants to eliminate Missouri's income tax by 2026.
- Missouri's current income tax rate is 4.7%, bringing in about $10 billion or 63% of the state's general revenue.
- The proposal may lead to other tax changes, like increasing sales tax, to make up for the loss in income tax revenue.
- Only nine U.S. states currently have no income tax.
- Missouri House Majority Leader Alex Riley mentioned the plan would be phased over ten years.
- Critics argue that removing income tax could favor the wealthy and create budget challenges.
- The detailed plan will be presented when lawmakers file new legislation in December.
- Governor Kehoe emphasized that the plan aims to let Missourians keep more of their earnings.
