Conservative group urges Missouri lawmakers to back plan to eliminate state income tax

A push to scrap Missouri’s personal income tax has gained momentum, with key groups backing Governor Mike Kehoe’s proposal. Announced in December 2025, the plan would phase out the tax over several years while aiming to protect essential state services. Supporters claim the move would boost competitiveness and attract businesses to the state.

Governor Kehoe’s proposal has won public support from major organisations, including the Missouri Chamber of Commerce and Industry, Americans for Prosperity, the Missouri Farm Bureau, and the Missouri Republican Party. The Advancing American Freedom Foundation, a conservative policy group, has also urged lawmakers to back the plan.

The coalition argues that Missouri’s budget issues come from rising spending, not insufficient revenue. Over the past decade, state spending has grown faster than inflation and population increases combined. Despite this, Missouri collects around £9 billion annually from personal income taxes—nearly two-thirds of its general revenue.

Critics warn that eliminating the tax could lead to significant revenue losses and cuts to public services. However, supporters counter that the state’s high income tax rate harms entrepreneurs and small businesses. They point to states like Texas and Florida, which have no personal income tax yet spend more per person than Missouri in some areas.

The governor’s phased approach aims to balance tax cuts with funding for core government functions. If approved, the change would mark a major shift in Missouri’s tax policy. Lawmakers will now weigh the potential economic benefits against concerns over lost revenue and service reductions.

Conservative group urges Missouri lawmakers to back plan to eliminate state income tax