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Missouri Voters to Decide on Amendment 5 to Eliminate State Income Tax

Missourians will vote on Amendment 5 during the August 4 primary election to determine if the state can eliminate its income tax by expanding sales and use taxes. The constitutional amendment would authorize lawmakers to phase out the personal income tax over several years, replacing the lost revenue with a broader tax base that includes goods and services not currently taxed. State Rep. Bishop Davidson, a supporter of the amendment, argues that the measure will spur economic growth and create a competitive labor market. He contends that the flexibility of the amendment allows lawmakers to adapt to economic changes. Conversely, critics like Amy Blouin of the Missouri Budget Project warn that the shift from an income tax to a sales tax is regressive, potentially placing a heavier burden on low- and middle-income residents. While proponents highlight the potential for growth, opponents express concern over the lack of specific details regarding which goods and services will be taxed, noting that it is essentially a 'trust us' plan for the state's tax policy.

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