Missouri voters delivered an overwhelming verdict at the ballot box, rejecting a proposed constitutional amendment that would have allowed lawmakers to gradually eliminate the state’s individual income tax. With more than 82 percent voting against Amendment 5 and roughly 95 percent of precincts reporting, the proposal suffered one of the most decisive defeats of the election.
The amendment had been championed by Republican Gov. Mike Kehoe as part of a broader effort to make Missouri more competitive by lowering taxes. While supporters argued that eliminating the income tax could attract businesses and new residents, opponents raised concerns that the change would likely lead to higher sales taxes and place a heavier burden on lower-income families.
Following the results, Gov. Kehoe acknowledged the outcome while reaffirming his commitment to pursuing tax relief.
“Throughout this conversation on eliminating the state income tax, we made the case that Missouri should think boldly about its future, challenge the status quo, and pursue policies that make our state more competitive. While Amendment 5 did not earn the support it needed, I believe our work is far from over,” Kehoe said.
The governor added, “I remain committed to working with the General Assembly in the years ahead on ways to continue cutting taxes, growing our state’s economy, and pursuing conservative policies that help Missouri families keep more of what they earn.”
Missouri’s current individual income tax reaches as high as 4.7 percent, depending on income level, and generates approximately $9 billion each year. Those funds support a wide range of state services, including transportation, education, healthcare programs, and social services.
Amendment 5 would have required the state to gradually eliminate that tax over a five-year period, provided certain revenue targets were met. However, while the measure directed lawmakers to modify Missouri’s sales and use tax system during the transition, it did not spell out exactly how billions of dollars in lost revenue would be replaced.
That uncertainty became one of the biggest issues surrounding the proposal.
Analysts suggested lawmakers would likely have been forced to consider raising Missouri’s statewide sales tax or expanding taxes to goods and services that are currently exempt. Potential targets could have included digital subscriptions, haircuts, some grocery items, and a variety of professional services.
Critics argued that such a shift would place a larger burden on working families because lower-income households generally spend a greater percentage of their income on everyday purchases.
Missouri House Minority Leader Ashley Aune said she expected the amendment to fail, though she admitted she was surprised by the size of the defeat.
“I knew that it was going to fail. I am genuinely surprised by how much it failed by, but I’m heartened because that tells me that Missouri voters are paying attention and they are unwilling to be fooled by the Missouri GOP,” Aune said.
Supporters, however, maintained that eliminating the income tax would have strengthened Missouri’s long-term economy. They pointed to states such as Florida and Tennessee, which do not levy a state income tax and have experienced significant population and economic growth.
Joe Lamie of Missouri Promise PAC, which backed the amendment, said the organization remains committed to pursuing lower taxes despite the election results.
“Gov. Kehoe deserves credit for thinking big, and we will continue to work alongside him to reduce the tax burden on hardworking Missourians and advance policies that help our state grow and prosper,” Lamie said.
Opponents also argued that voters rejected the amendment because many believed they had not been given enough information about how such a major tax overhaul would actually work.
Amy Blouin of the nonpartisan Missouri Budget Project said the proposal lacked critical details.
“This is the Show-Me State and they did not get shown what the details were, and I think that was a significant part,” Blouin said. “But I also think there were real concerns about the shift from income tax to sales tax and the implications that has for real people.”
For now, Missouri’s income tax remains in place, but the debate over tax reform is unlikely to disappear. While voters decisively rejected Amendment 5, Republican leaders have already indicated they intend to continue searching for ways to reduce taxes and reshape the state’s economic future.
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