House Joint Resolution 154 (HJR 154) intends to amend the Missouri Constitution to impose several new requirements on the Medicaid expansion population and the Missouri Department of Social Services (DSS). Most significantly, the legislation limits the flexibility that HR 1 Read More

Missouri lawmakers are considering swapping out the income tax for a greatly expanded sales tax. This proposal would put affordable housing and non-profits at risk by eliminating key sources of funding for community development and investment. Many tax credits in Missouri serve Read More

Lawmakers are considering swapping out the income tax for a greatly expanded sales tax. The proposal would blow a $5 billion hole in the state budget, causing massive cuts to schools, particularly in rural areas.1 If resulting cuts are equally distributed across the budget, state Read More

Some Missouri lawmakers want to eliminate the state’s income tax and greatly expand sales taxes, pointing to states like Tennessee, Florida, & Texas as models. But those states have resources Missouri does not have, and except for the highest earners, taxpayers in those Read More

A proposal touted as an elimination of Missouri’s income tax is in reality the introduction of a two-step process that could swap the individual income tax for greatly expanded sales taxes. This switch would increase total taxes for up to 4 out of 5 Missourians and harm our Read More

Updated February 2026View previous version here Governor Kehoe recently announced that Missouri expects a $2 billion general revenue shortfall for fiscal year 2027 (the state budget year that begins July 1st). This shortfall is mostly the result of previously enacted state tax Read More

Submitted on Behalf of Amy Blouin, President & CEO of the Missouri Budget Project Swapping out the income tax for a greatly expanded sales tax is a lose-lose proposal for Missourians, our communities and our economy: – 60-80% of Missourians would see a net tax increase Read More

Show-Me the Details: With No Plan, Those Wanting to Eliminate the State Income Tax Are Trying to Sell Missourians a Lemon Read More

Missouri policymakers continue to propose the elimination of Missouri’s individual income tax. But evidence from states without income taxes shows that these states are only low tax for the highest earners. Instead, they rely heavily on sales & excise taxes that hit low and Read More

Despite a looming budget cliff, some policymakers are pushing to eliminate the income tax in the 2026 legislative session. Proponents may instead look to replace the income tax with an expanded sales tax. While no detailed plan has been released yet, the sales tax rate would Read More