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flag Missouri Republicans propose eliminating income tax and replacing it with a higher sales tax, requiring voter approval.

flag Missouri Republicans are pushing a proposal to eliminate the state’s income tax and replace it with a broader sales tax, following a party-line committee vote. flag The plan, backed by Gov. flag Mike Kehoe and House Speaker Jon Patterson, would expand the sales tax to all goods and services, including gasoline, and phase out the income tax over time, reducing the top rate to 1.4%. flag To replace lost revenue—about $13.4 billion in fiscal year 2025—the sales tax could rise to nearly 13%, with exemptions for fuel tax revenue. flag The measure requires voter approval in August or November and faces Democratic opposition over concerns about regressive impacts and budget instability. flag Republicans argue it would boost competitiveness and simplify taxation.

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