The Missouri Senate recently stated that the House’s current plan to eliminate income taxes would cost the state $4.2 billion in its first year. The revelation sparked strong reactions among Missouri residents, as many believe eliminating income taxes would be a net negative for the state.
According to local media outlets, the Republican-backed plan to eliminate the income tax, which was previously approved by the House, recently passed the Senate Fiscal Oversight Committee in a 6-3 party-line vote.
There is, however, some controversy over how much revenue the bill would actually cost. The Senate committee’s revised estimate is far higher than the House’s original projection. Under the current proposal, the top income tax rate would automatically fall from 4.7% to 3.1% on Jan. 1, 2027, driving the projected loss up to $4.2 billion. Republicans, however, have reportedly called that figure a “drafting error,” suggesting the actual impact could be smaller than what the Senate presented.
If the bill passes, the plan would be to expand and potentially raise sales taxes to replace the lost income tax revenue.
Missouri Residents Slam House’s Plans to Eliminate Income Taxes
The plans to slash income taxes have not sat well with Missouri residents, especially given how large the loss in state revenue could be. One seemingly angry social media user commented, “Guys, it didn’t work in Kansas, but surely it’ll work in Indiana. Ok, it didn’t work in either of those places, but there’s no way it’ll fail in Missouri.” Another answered, “It works great in those states for the rich.”
Others were outraged by how legislators could come up with such different numbers: “Is it so much to ask that the people running the state know how to do math? Or draft legislation?” One user sarcastically summed up the situation: “I love watching my state gleefully shoot off its toes one by one.”
One of the main reasons folks were angry about the bill is that many felt the “tax burden now gets shifted to the poor. If you’re making minimum wage in MO, you aren’t paying much in income taxes at all.” Also, if taxes are not increased elsewhere, the state could fail to provide much-needed public services. “We need to fund our schools. How about instead of eliminating income taxes, we spend that money on education,” one local lamented.
Before the bill can become law, it still has to pass the full Senate, and it seems likely the plan will remain controversial if it moves forward.
