In Missouri, we have an exciting opportunity to repeal our income tax by a vote of the people through passing Amendment 5 on the ballot on August 4, 2026. As we prepare to get ready to vote, there is a lot to consider.
Let’s be clear: Amendment 5 calls for a phase-out over multiple years of our onerous state income tax. The tax will be reduced as revenue grows. Once the income tax reaches Zero, the Missouri Constitution will forbid it to be reinstated. We are once again poised to make history in this key moment in time.
Many Missourians have watched the growth and prosperity of our neighboring State of Tennessee. Several other states, including Georgia, Kentucky, Mississippi, Oklahoma, and South Carolina are also working to scrap their state income taxes. Taxpayers who want to be part of this low-tax movement are coalescing.
Like the so called “Death Tax,” which Missouri Eagle Forum engaged to fight to eliminate at the federal level, the income tax punishes hard work and success while it stifles growth. Missouri has been a stagnant state as many people have no choice but to leave home to avoid the penalties in Missouri. Missourians are struggling to attract business, and we are working harder and harder, and finally we have the solution which is to work smarter.
A key challenge many of us are talking about at our kitchen tables is how to raise necessary state revenue fairly. America has moved from a retail goods economy to a service economy, but the sales of retail goods bear the weight of subsidizing state and local governments. Three-quarters of the workforce and gross national product are in services; only 25% is in retail. Much of commercially leased space is occupied by services – all of which are exempt from collecting Missouri sales taxes.
Keep in mind that Missouri has doubled its state budget in the last ten years. We must insist that the government manages its spending just as we must do in our homes and local communities in the Saint Louis region. Amendment 5 includes necessary benchmarks for reductions in spending.
In the greater St. Louis region, the various municipalities charge a range of sales taxes. The difference is not large enough for consumers to drive to a lower tax district for small purchases. Plus, Missouri is economically diverse, which means that we do not rely on one industry to support the majority of taxes. Our economic diversity ensures that the tax revenues are not impacted when one industry has a downturn.
Washington state used to be free of income tax, but now they have chosen to have a “Millionaire’s” tax of nearly 10%. Once the camel’s nose gets under the tent, it won’t be long before the non-millionaires are also paying through the nose. The Seattle mayor, Katie Wilson, has waved “Bye” to residents who move for economic reasons. Let’s scrap our tax and encourage people to relocate to Missouri to enjoy the prosperity that comes with low rates of taxation.
