Featured State Tax Policy

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

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

For Immediate Release: July 10, 2025Contact: Amy Blouin, Governor Signs $500 Million Tax Giveaway as State Faces Growing Budget Challenges   Statement from Missouri Budget Project CEO Amy Blouin Governor Kehoe is expected to sign House Bill 594 this afternoon, a tax bill that Read More

For Immediate Release: July 3, 2025Contact: Amy Blouin, Congress Passes Budget Reconciliation      Community leaders respond to passage of the budget reconciliation bill, which puts health coverage and food assistance for hundreds of thousands of Missourians on the chopping block Read More

A number of tax changes made over the last three decades have resulted in an inadequate, upside-down tax system where low- and middle-income Missourians pay a higher share of their income in taxes than the richest Missourians, and out-of-state corporations pay less than their Read More

A number of tax changes made over the last three decades have resulted in an inadequate, upside-down tax system where low- and middle-income Missourians pay a higher share of their income in taxes than the richest Missourians, and out-of-state corporations pay less than their Read More

In Missouri, working families with low wages generally pay a higher share of their income in state and local taxes than do the highest earners. Improving the state’s working families tax credit would make Missouri’s tax structure more fair, further incentivize work, Read More

A number of tax changes made over the last three decades have resulted in an inadequate, upside-down tax system where low- and middle-income Missourians pay a higher share of their income in taxes than the richest Missourians, and out-of-state corporations pay less than their Read More

Governor Parson’s recently released tax proposal would leave out about 1/3 of Missourians, including many of those who pay the highest proportion of their income in state & local taxes, and set the state up for a Kansas-like budget bomb that would require significant cuts to Read More

NOTE: This analysis has been updated to reflect the specific proposal released by Governor Parson on August 22, 2022. A PDF of the earlier version (based on the outline of the proposal the Governor had described in June) can be found at the bottom of this page. Governor Parson’s Read More