Governor Kehoe Continues Calls for End to State Income Tax

Jefferson City, Mo. (KFMO) - While Missourians rush to file their taxes ahead of Tuesday's deadline, Governor Mike Kehoe is calling for a major overhaul of the state’s tax system—eliminating the Missouri State Income Tax altogether.

Kehoe, a Republican candidate for governor in 2024, has floated the idea in recent months as part of a broader vision for reshaping Missouri’s economy.

Missouri Department of Revenue Director Trish Vincent says the plan remains in its early stages and is currently under review.

Vincent noted that the Missouri State Income Tax brings in between $9 and $10 billion each year—making it one of the largest sources of revenue for the state. That money supports vital services like public schools, law enforcement, transportation infrastructure, and healthcare.

Kehoe has hinted that a shift toward a consumption-based tax system—such as higher sales taxes—could offset the loss of income tax revenue. However, critics warn that such a move could disproportionately impact low- and middle-income families, who would see a larger share of their income go toward taxes on goods and services.

As of now, no formal legislation has been introduced, and the governor’s office says it will continue working with the Department of Revenue and state lawmakers to explore feasible options.

The proposal would likely require significant restructuring of the state’s budget and possibly a constitutional amendment, depending on the approach taken.