Missouri Income Tax Scheme

For Immediate Release: March 10, 2026Contact: Traci Gleason Swapping State Income Tax for Increased Sales Taxes Will Harm Missourians, State & Local EconomyStatement from Amy Blouin, President and CEO, Missouri Budget Project In voting to move forward on a tax scheme that 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

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

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