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Missouri Proposes Income Tax Phase-Out by 2032

4/11/2026

32 6 Full Breakdown

Summary

Story summary

A Missouri public hearing on April 1 addressed House Joint Resolutions 173 and 174 to phase out the income tax by 2032.
Missouri relies on income tax revenue for about 65% of funds, underscoring the challenge of elimination.
Critics warn replacing the tax with higher sales taxes could disproportionately affect low-income residents and essential services.
The measure awaits further legislative approval and a public vote.

History

Historical Context

During the Great Depression in 1933, Missouri relied heavily on income tax for state revenue, contributing 65% to its funding. This mirrors historical debates on tax equity, dating back to the Civil War when income taxes were first introduced. The proposed phase-out of Missouri's income tax raises concerns about fairness, potentially reshaping its fiscal landscape and echoing past reforms aimed at addressing economic disparities.

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Story summary

A Missouri public hearing on April 1 addressed House Joint Resolutions 173 and 174 to phase out the income tax by 2032.
Missouri relies on income tax revenue for about 65% of funds, underscoring the challenge of elimination.
Critics warn replacing the tax with higher sales taxes could disproportionately affect low-income residents and essential services.
The measure awaits further legislative approval and a public vote.

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