Wall Street Journal
The migration from high-tax to low-tax locations continues, and more states are trying to reduce or eliminate their income tax to stay competitive. The next may be Missouri, where voters will consider a ballot measure on Aug. 4 to phase it out.
Amendment Five would change the Missouri constitution to require lawmakers to cut income taxes if the state hits certain revenue triggers. Once the tax is eliminated, the constitution would prohibit reinstating it. The measure would also require local tax rate cuts “if local sales tax revenue increases” and let lawmakers expand state sales and use taxes.
Missouri’s income tax generates some $9 billion a year or about 61% of general revenue. Amendment Five aims to phase out the income tax in part by replacing revenue with sales taxes, ideally by 2032. It requires lawmakers to create revenue targets and a trigger mechanism for income-tax cuts with that schedule in mind.
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