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Missouri Governor Proposes Tax Overhaul Amid Controversy

1/14/2026

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Summary

Story summary

Governor Mike Kehoe of Missouri proposed phasing out Missouri's income tax in favor of an expanded sales tax, contingent on voter approval.
He cites competition with Tennessee and Texas as a justification for the plan.
The budget proposal includes about $600 million in general revenue spending cuts.
Critics, including House Minority Leader Ashley Aune, warn the plan could produce one of the largest tax increases in state history.

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Story summary

Governor Mike Kehoe of Missouri proposed phasing out Missouri's income tax in favor of an expanded sales tax, contingent on voter approval.
He cites competition with Tennessee and Texas as a justification for the plan.
The budget proposal includes about $600 million in general revenue spending cuts.
Critics, including House Minority Leader Ashley Aune, warn the plan could produce one of the largest tax increases in state history.