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Missouri Republicans propose eliminating income tax and replacing it with a higher sales tax, requiring voter approval.
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.
The plan, backed by Gov.
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%.
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.
The measure requires voter approval in August or November and faces Democratic opposition over concerns about regressive impacts and budget instability.
Republicans argue it would boost competitiveness and simplify taxation.
Los republicanos de Missouri proponen eliminar el impuesto a la renta y reemplazarlo por un impuesto a las ventas más alto, que requiere la aprobación de los votantes.