Missouri lawmakers are preparing to eliminate the state income tax, joining nine other states in the U.S. that have already removed it. The proposal will be a central topic in the upcoming legislative session.
House Speaker Jon Patterson said he supports ending the tax but offered few details on how the state would replace the billions in revenue it generates. Missouri’s income tax brings in over $4 billion each year, making it the largest source of state revenue.
Patterson told FOX4 that the move is aimed at making Missouri more competitive and encouraging population growth. “We have to do things that make people want to live in Missouri, and one of those things is income taxes,” he said.
The House speaker met with Governor Mike Kehoe to begin planning the proposal. Patterson said both leaders agree on the goal, though discussions are ongoing about why the state should make this change and how to implement it responsibly.
Republicans control large majorities in both the House and Senate. Legislation backed by the governor and speaker usually advances quickly, but eliminating income tax poses significant challenges. Patterson noted that the tax system dates back to the 1930s and needs modernization. He also suggested that the plan could include measures to prevent sudden drops in revenue.
Democrats, however, criticized the proposal as risky. House Democratic Minority Leader Ashley Aune called it financially reckless, pointing out that a recent capital gains tax cut has already left a $410 million gap in the state budget. She said removing income taxes, which account for more than 70% of state revenue, would force large increases in sales taxes, making daily life harder for residents.
Patterson rejected the claim that the plan favors a small group. “I think everybody pays income taxes. I’d like to see it where maybe the people who visit pay their fair share,” he said.
The speaker said ending income tax is one of many tools to attract residents. He noted that the rise of remote work means people consider tax policy when deciding where to live. Patterson also expressed confidence that the legislation would pass the House and ultimately succeed.
The full proposal is expected to be revealed by the time of the Governor’s State of the State address in January. The plan could spark one of Missouri’s most significant debates on taxes in decades.
Missouri’s proposal comes as other states compete to attract new residents and businesses. Nine states, including Texas and Florida, have already removed state income taxes. Supporters argue that lower taxes encourage growth, while critics warn that losing billions in revenue could harm public services.
Lawmakers will need to balance economic incentives with the need for stable funding for schools, roads, and public programs. Patterson suggested that the proposal could include safeguards to prevent sudden revenue drops, but details are still limited.
As discussions continue, the debate is expected to dominate headlines in Missouri politics. Lawmakers, business groups, and advocacy organizations will closely watch how the plan develops.
Missouri residents could see major changes in state tax policy if the proposal passes. While Republicans highlight growth and competitiveness, Democrats focus on fiscal responsibility and affordability for everyday Missourians.
The coming months are likely to see a heated discussion about whether eliminating the income tax will benefit all Missourians or create new financial challenges.
