Show-Me the Details: With No Plan, Those Wanting to Eliminate the State Income Tax Are Trying to Sell Missourians a Lemon
Statement from Amy Blouin, President & CEO, Missouri Budget Project
The taxes all Missourians pay are how we come together to lay the foundations that create opportunity and help all of us thrive – like good schools, job training, and support for kids and older adults.
While Governor Kehoe reiterated his desire to eliminate the state income tax in his State of the State address today, he offered few details of how this so-called “plan” would work.
But quite simply, eliminating the income tax rigs the system for the wealthy, while hurting working people, families, and communities.
Most Missourians pay the majority of their state and local taxes in sales & property taxes – not income taxes. If new sales taxes are charged on services, overall taxes will likely increase for most Missourians.
Missouri already has an upside-down tax system where low- and middle-income Missourians pay a higher share of their incomes in state and local taxes. This plan would further shift costs onto families that are already struggling to get by.
Moreover, if policymakers want to make Missouri more competitive, they should invest in the services Missourians need – and businesses look for in location decisions – like workforce readiness, education, and infrastructure.
Comparisons to Tennessee also fall flat – while Missouri and Tennessee are comparable in terms of economic metrics, most Tennesseans pay MORE in total state and local taxes than do Missourians. Only the top 20% of Tennessee earners pay less.
Missourians deserve better than another attempt to pad the pockets of the elite at the expense of working families. Policymakers should go back to the drawing board Instead of trying to sell Missourians this lemon of a plan.
