{"id":8464,"date":"2026-01-13T14:59:39","date_gmt":"2026-01-13T20:59:39","guid":{"rendered":"https:\/\/westplexnews.com\/index.php\/2026\/01\/13\/gov-mike-kehoe-wants-voters-to-decide-whether-missouri-should-eliminate-its-income-tax\/"},"modified":"2026-01-13T14:59:39","modified_gmt":"2026-01-13T20:59:39","slug":"gov-mike-kehoe-wants-voters-to-decide-whether-missouri-should-eliminate-its-income-tax","status":"publish","type":"post","link":"https:\/\/westplexnews.com\/index.php\/2026\/01\/13\/gov-mike-kehoe-wants-voters-to-decide-whether-missouri-should-eliminate-its-income-tax\/","title":{"rendered":"Gov. Mike Kehoe wants voters to decide whether Missouri should eliminate its income tax"},"content":{"rendered":"

\"\"<\/p>\n

Gov. Mike Kehoe during his 2025 State of the State address to the legislature (Annelise Hanshaw\/Missouri Independent).<\/p>\n

Gov. Mike Kehoe wants voters to determine whether Missouri should completely phase out its income tax and replace it with an expanded sales tax, leaving details on how to do it for lawmakers to decide next year.<\/p>\n

Kehoe laid out the plan in his annual State of the State address<\/a> to a joint session of the Missouri General Assembly on Tuesday afternoon. After declaring that he was determined to trim the size of the state budget, the governor said Missouri is falling behind states like Tennessee and Texas that don\u2019t have an income tax.<\/p>\n

\u201cIf we are serious about building a foundation for growth,\u201d he said, \u201cto compete rather than be complacent, then we must begin the work now to phase-out and eliminate Missouri\u2019s individual income tax.\u201d<\/p>\n

Missouri\u2019s income tax represents 65% of last year\u2019s $13.4 billion in state revenue. Since 2014, the top income tax rate has fallen from 6% to 4.7%. Two future cuts, bringing the rate down to 4.5%, are already on the books and will take effect if general revenue growth hits certain targets.<\/p>\n

\n

Missouri revenue surplus nearly gone as Gov. Mike Kehoe unveils his budget plan<\/a><\/p>\n<\/blockquote>\n

Missouri can maintain a balanced budget that supports essential services and eliminate the income tax, Kehoe said, by expanding what services are covered by the state\u2019s sales tax.<\/p>\n

\u201cToday, much of our commerce happens through monthly subscriptions and digital services like online advertising, e-books and AI platforms that fall outside our current sales tax base,\u201d he said, adding: \u201cWhen these types of modern services are taxed, it will create new revenue for local governments.\u201d<\/p>\n

These increases \u201cwill need to be offset by reducing local taxes, like property taxes,\u201d Kehoe said, \u201ca high priority for Missourians and many of us in this room.\u201d<\/p>\n

Any expanded sales tax will not include agriculture, health care or real estate, Kehoe said. And he dismissed those who point to states like Kansas, which slashed income taxes in 2012 and created a fiscal fallout so severe that lawmakers reversed most of the cuts five years later.<\/p>\n

\u201cSome critics and members of the media will claim that tax cuts put us in a bad budget situation,\u201d Kehoe said. \u201cI disagree. The folks who say that just want to spend more of your money. I will never apologize for putting money back in the pockets of hardworking Missourians.\u201d<\/p>\n

Kehoe didn\u2019t delve into specifics of his income tax vision, saying only that step one would involve putting a question on the statewide ballot asking: \u201cShould Missouri begin a phased elimination of the individual income tax, with a full repeal within the next five years.\u201d<\/p>\n

\u201cOnce voters approve this measure,\u201d Kehoe said, \u201cI look forward to working with the General Assembly next session to carry out the will of the people and put this plan into action.\u201d<\/p>\n

A proposed constitutional amendment filed Tuesday by House Speaker Jon Patterson appears to be the legislative vehicle for Kehoe\u2019s plan. It seeks to ask voters: \u201cShall the Missouri Constitution be amended to allow the reduction and elimination of state individual income tax and to authorize the expansion of the sales and use tax base for the purpose of reducing and eliminating the state individual income tax?\u201d<\/p>\n

The legislature could eliminate the tax without having to go to the ballot.<\/p>\n

But to raise a tax requires a statewide vote. And expanding the sales tax base would require a vote to roll back a 2016 constitution amendment approved by voters prohibiting the state from adding sales taxes to services or transactions.<\/p>\n

House Minority Leader Ashley Aune, a Kansas City Democrat, said replacing the income tax with an increased and expanded sales tax would be\u00a0\u201cone of the largest and most devastating tax increases in state history.\u201d<\/p>\n

\u201cMost Missourians would get smacked with a massive tax increase to pay for yet another unwarranted tax cut for the rich,\u201d she said.<\/p>\n

In his speech, the governor also pledged to look for a \u201csustainable, long-term solution for our growing energy demands.\u201d<\/p>\n

Specifically, Kehoe hopes to expand nuclear power in Missouri.<\/p>\n

\u201cI am proud to announce that Missouri, and this administration, is all in on nuclear,\u201d he said.<\/p>\n

\n

Public school open enrollment wins tentative support from Missouri education board<\/a><\/p>\n<\/blockquote>\n

Nuclear is a \u201csafe, reliable and clean energy source that can and will power Missouri\u2019s economic future for generations to come,\u201d Kehoe said, calling for an update to Missouri\u2019s Renewable Energy Standard to add \u201cnuclear power sources.\u201d<\/p>\n

On education, Kehoe threw his support behind efforts to allow students to enroll in neighboring public school districts.<\/p>\n

\u201cOpen enrollment gives families the freedom to choose the public school that best meets their child\u2019s needs, regardless of ZIP code,\u201d he said. \u201cIt\u2019s about fairness. It\u2019s about access. And it\u2019s about making sure no child\u2019s future is limited by their address.\u201d<\/p>\n

Kehoe also announced he was issuing an executive order requiring the creation of a statewide school accountability A through F grade card, saying the current system does not give a straightforward picture of how schools are performing.<\/p>\n

\u201cParents deserve clear, easy to understand information,\u201d he said, \u201cabout how schools are performing so they can make the best decision for their children.\u201d<\/p>\n

And he wants to add $10 million in state funding to Missouri\u2019s private school voucher program. Last year, Kehoe successfully pushed for $50 million for the program.<\/p>\n

The governor also reiterated his support of Amendment 3, a proposal lawmakers placed on the November ballot that would reinstate Missouri\u2019s abortion ban.<\/p>\n

\u201cAmendment 3,\u201d he said, \u201creflects Missouri\u2019s long-standing commitment to life and standing with women.\u201d<\/p>\n

This story was updated at 5 p.m. to include response from House Democrats.\u00a0<\/em><\/p>","protected":false},"excerpt":{"rendered":"

Gov. Mike Kehoe during his 2025 State of the State address to the legislature (Annelise Hanshaw\/Missouri Independent). Gov. Mike Kehoe wants voters to determine whether Missouri should completely phase out its income tax and replace it with an expanded sales tax, leaving details on how to do it for lawmakers to decide next year. Kehoe…<\/p>\n","protected":false},"author":2,"featured_media":8465,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_kadence_starter_templates_imported_post":false,"_kad_post_transparent":"","_kad_post_title":"","_kad_post_layout":"","_kad_post_sidebar_id":"","_kad_post_content_style":"","_kad_post_vertical_padding":"","_kad_post_feature":"","_kad_post_feature_position":"","_kad_post_header":false,"_kad_post_footer":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-8464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"yoast_head":"\nGov. 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