Missouri Voters Decide on Income Tax Elimination in Amendment 5

Missouri voters will decide on Amendment 5 during the August primary elections. The proposal seeks to phase out the state income tax to stimulate the economy, with proponents claiming the measure would provide citizens with an additional $3,000, lower property taxes, and assist seniors in maintaining their homes. To offset the revenue loss, the amendment includes the implementation of new sales taxes and a five-year suspension of the 1996 Hancock II tax limitation.

Mike Kehoe, Governor of Missouri, expressed support for preserving donation incentives that would be lost if the income tax is eliminated, such as tax credits of up to 70% for qualifying donations. He suggested the state could use corporate income tax credits to sustain funding for nonprofit entities, including pregnancy resource centers.

Critics argue the amendment is misleading and would burden low-income residents by increasing sales taxes on previously exempt costs like hospital bills and nursing home care. State Representative Stephanie Hein warned that removing tax incentives could reduce critical funding for food pantries. The Missouri Catholic Bishops also opposed the measure, stating that taxation systems must serve the common good and be guided by justice and equity. Financial manager Tom Sadowski and several candidates for Senate District 6 joined the opposition, arguing the measure would make border-state businesses less competitive.