Summary
Missouri Governor Mike Kehoe is urging the state legislature to let voters decide on phasing out the state's individual income tax. This proposal aims to replace the income tax with an increased sales tax on digital services except for agriculture, health care, and real estate. The plan needs voter approval since any new tax changes require a constitutional amendment.
Key Facts
- Governor Mike Kehoe wants Missouri voters to decide whether to phase out the state's individual income tax.
- The income tax makes up nearly two-thirds of Missouri's $13.4 billion revenue.
- The plan proposes replacing lost income tax revenue by widening the sales tax base to include digital services.
- Kehoe argues that Missouri lags behind states like Tennessee and Texas, which do not have state income taxes.
- The plan would phase out the income tax over five years.
- Any new types of taxation need voter approval due to a 2016 amendment.
- The proposal excludes sales tax expansions on agriculture, health care, and real estate services.
- Kehoe emphasizes maintaining a balanced budget and fiscal responsibility.
