Missouri Governor Proposes Eliminating State Income Tax

Democrats argue now is not the right time for such a major tax change.

Jan. 29, 2026 at 1:07pm

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Missouri Governor Mike Kehoe is pushing state lawmakers to approve a plan that would ask voters to eliminate the state's income tax. However, Democrats argue that now is not the appropriate time to make such a significant tax change.

Why it matters

The elimination of the state income tax could have major implications for Missouri's budget and the funding of public services. Supporters argue it would boost the state's economy, while critics are concerned about the potential loss of revenue.

The details

Governor Kehoe's proposal would ask Missouri voters to approve a constitutional amendment to phase out the state's income tax over several years. The governor believes this would make Missouri more economically competitive and attract new businesses and residents. However, Democrats argue that with the economic uncertainty caused by the pandemic, now is not the right time to make such a drastic change to the state's tax structure.

  • Governor Kehoe is currently pushing state lawmakers to approve the plan.
  • If approved by the legislature, the proposal would then go to Missouri voters for final approval.

The players

Mike Kehoe

The current Governor of Missouri, a Republican who is proposing the elimination of the state's income tax.

Missouri Democrats

The Democratic party in Missouri, who argue that now is not the appropriate time to eliminate the state's income tax.

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What they’re saying

“Now is not the time to make such a drastic change to our state's tax structure.”

— Missouri Democrats

What’s next

If approved by the state legislature, the proposal to eliminate Missouri's income tax would then go to voters for final approval.

The takeaway

The debate over eliminating Missouri's income tax highlights the ongoing tension between Republican efforts to reduce taxes and Democratic concerns about the potential impact on public services and the state budget, especially during uncertain economic times.