You knew that Tuesday was a big day in Missouri. Voters had the chance to eliminate the state’s income tax (over time) and to join the elite group of no-income-tax states. The vehicle for that change was Amendment 5.
Unfortunately, that effort failed as voters viewed the initiative as flawed and gave it a resounding defeat. It appears many voters didn’t want to trade lower income taxes for higher sales taxes, an understandable viewpoint, though perhaps shortsighted. KOMU reported:
Missouri voters rejected Amendment 5 on Tuesday, which would have slowly phased out state income tax and given lawmakers the power to broadly raise sales taxes instead.
The Associated Press called the race at 8:12 p.m.
Income taxes made up 61% of Missouri’s general revenue funds in the most recent fiscal year, which ended in June.
Amendment 5 would have given the Missouri General Assembly five years to impose and/or raise sales taxes on any good and service in the state.
As revenue from that increased, it would have triggered mandated reductions in the state income tax rate, starting at the top, until it eventually became zero when the sales tax revenue matched what was previously made from income taxes.
In response to Amendment 5’s failure, Governor Mike Kehoe of Missouri explained on X.com:
Throughout this conversation on eliminating the state income tax, we made the case that Missouri should think boldly about its future, challenge the status quo, and pursue policies that make our state more competitive.
While Amendment 5 did not earn the support it needed, I believe our work is far from over.
I remain committed to working with the General Assembly in the years ahead on ways to continue cutting taxes, growing our state’s economy, and pursuing conservative policies that help Missouri families keep more of what they earn.
Missouri is already 12th overall in America for state tax competitiveness according to the Tax Foundation, and the only state bordering Missouri with a better ranking is Tennessee, at 8th. So while it’s disappointing that Missouri didn’t choose to eliminate its income tax, the state has some breathing room and time to find a path forward for becoming even more competitive.
Action Line: Is your state on the right track to tax competitiveness? Or are radical politicians eyeing your money like it’s theirs, hoping to fund a radical agenda that makes you nothing more than a piggy bank? If you’re looking for a better America, begin your search with Your Survival Guy’s 2026 Super States. And click here to subscribe to my free monthly Survive & Thrive letter.
Originally posted on Your Survival Guy.
