Missouri Eyes Ballot to Phase Out Income Tax with Expanded Sales Tax

Gov. Mike Kehoe proposed placing a statewide ballot question to begin phasing out Missouri’s personal income tax within five years, funded by expanding the sales tax to cover digital and modern services (excluding agriculture, health care, and real estate). The move would require constitutional changes and legislative action, and faces opposition from Democrats who warn it could amount to a large tax increase even as Kehoe argues it would boost growth and provide local tax relief.