A proposed constitutional amendment to replace Missouri’s individual income tax with expanded sales and use taxes, a top priority of Republican Gov. Mike Kehoe, was soundly defeated by voters on Tuesday.
The measure, Amendment 5, failed with 83% of the ballots cast being no votes when the election was called at 8:15 p.m., according to published reports.
A “yes” vote would have given lawmakers the ability to expand sales and use taxes without voter approval to generate enough revenue to replace the roughly $9 billion brought into the state’s checkbook every year via Missouri’s 4.7% individual income tax.
Opponents said the tax swap would have shifted the state’s tax burden onto lower-income Missourians because it would allow lawmakers to impose new sales and use taxes on products and services not currently taxed, as well as increase Missouri’s existing sales tax rate of 4.225%.
In a statement Tuesday evening, Kehoe said, “Throughout this conversation on eliminating the state income tax, we made the case that Missouri should think boldly about its future, challenge the status quo, and pursue policies that make our state more competitive.
“While Amendment 5 did not earn the support it needed, I believe our work is far from over.
“I remain committed to working with the General Assembly in the years ahead on ways to continue cutting taxes, growing our state’s economy, and pursuing conservative policies that help Missouri families keep more of what they earn.”
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Tribune News Service contributed to this article.
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