Missouri House committee to hear income-tax elimination bill

JEFFERSON CITY, Mo. (KMIZ)

A committee in the Missouri state House of Representatives heard the governor's income-tax elimination bill and public comment on Wednesday.

Income-tax revenue makes up about two-thirds of the state's revenue. The general assembly needs to find a way to replace money from the income tax, and Republican Gov. Mike Kehoe had proposed expanding sales tax to include services.

The policy is receiving a lot of attention from Republicans, including Speaker of the House Jonathon Patterson (R-Lees Summit), who introduced the bill to the commerce committee.

Many Republicans who support eliminating the income tax say it means more money in Missourians' pockets. However, Democrats argue this would increase the prices of everyday services.

The speaker's bill, House Joint Resolution 174, doesn't make any changes to the tax rate right away. If passed, the bill would ask voters on November's ballot if they would want to get rid of income tax, Patterson said. From there, the next general assembly would make a plan to eliminate the income tax.

Committee Chairman Rep. David Casteel (R-High Ridge) said the committee is likely to vote on the bill next week.

Kehoe said in his State of the State Address that income tax elimination is a top priority for this legislative session.

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