Missouri’s governor says the state’s tax structure must evolve in order to compete with states like Tennessee and Texas, which have no individual state income tax.
Governor Mike Kehoe (R) addressed the issue during Tuesday’s State of the State address in Jefferson City, saying Missouri’s competitiveness starts with our tax code:
“If we are serious about building a foundation for growth, to compete rather than be complacent, then we must begin the work now to phase-out and eliminate Missouri’s individual income tax,” Governor Kehoe tells lawmakers.
The governor says the first step is gaining approval from Missourians this year at the ballot box. He’s calling for a phased elimination of the individual income tax, with full repeal within the next five years. House Democrats oppose his plan, saying Republicans want to shift the tax burden to working families.
Governor Kehoe has unveiled a proposed $54-billion budget that he says puts conservative values in action. Governor Kehoe addressed the issue during Tuesday’s State of the State address, saying his budget blueprint proves state government can live within its means with the economy growing:
“This budget cuts more than $600-million from the core starting to correct a future spending imbalance of potentially over $2-billion. Additionally our recommendation works to bring ongoing spending back in line with ongoing revenues,” the governor says.
The governor’s proposed budget includes about $7-million to replace outdated nurse call systems in state veteran homes and $2.5 million in funding to support child care for working families. Governor Kehoe is also calling for open enrollment, saying it gives families the opportunity to choose the public school that best meets their child’s needs, regardless of zip code.
Republicans have large majorities in both chambers this session, 24-10 in the Missouri Senate and a 106-52 majority in the Missouri House.