KANSAS CITY, Mo. — The Missouri House voted 95-59 Tuesday to pass a bill that would eliminate the state income tax and increase the state sales tax.
While Gov. Mike Kehoe does not have to approve the measure to put it to a statewide vote, he does have to select which ballot it will appear on. He has until May 22 to decide whether it will appear on the November election or a special election.
“HJR 173/174 has been truly agreed and finally passed, putting the choice to eliminate the state income tax where it belongs: in the hands of Missouri voters,” Kehoe said in a statement. “This is the first step in keeping our promise to make Missouri more competitive, attract jobs and investment, and let families keep more of what they earn from the start. We look forward to continuing this important conversation with Missourians in every corner of our state.”
READ | HRR 173/174
House Minority Leader Rep. Ashley Aune (D-Kansas City) provided a statement in opposition to the legislation.
“If paying more for everything you buy is something you enjoy, then you’ll love Tax Hike Mike’s plan,” Aune said. “For everyone who doesn’t want the governor digging his hands further into their pockets, this might be the worst idea ever conceived by a Missouri politician, and voters are destined to reject it.”
According to the joint resolution, the ballot language for this item will read:
“Shall the Missouri Constitution be amended to:
- Phase-out the individual income tax based on revenue growth;
- Reduce personal property and other local taxes when local revenues increase;
- Modify the sales and use tax to eliminate income tax and reduce local taxes; and
- Protect local funding for public schools?”
KSHB 41’s Ryan Gamboa talked to voters in March about the possibility of eliminating the state income tax and increasing the state sales tax.
Those in favor argued it provides more choice to Missourians in how they save and spend their money.
"We're looking to put your money in your pocket, to let you decide how it's spent rather than giving it to the government, and we decide how it's spent," said State Rep. Bill Irwin (R-Lee's Summit).
But those against the legislation said they believe it would hurt vulnerable Missourians.
"The thing about being more conscientious about our spending is that people are already in an economic crisis," said LaNee Bridewell, a Kansas City Public Schools parent. "Gas prices are already through the roof, food prices are already at record highs, so I don't know how much more conscientious we can be."
Gamboa previously reported the Missouri Budget Project estimates this bill would raise net taxes on 60% to 80% of Missouri residents and cut state funding by $5 billion.
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