Missouri House approves Kehoe’s tax elimination bill

By: Allison Patton

JEFFERSON CITY, Mo. (KMIZ) -- After less than an hour of debate, the Republican-led Missouri House approved Gov. Mike Kehoe's income tax elimination bill with a 98-54 vote.

It will now be sent to the Senate.

The bill would phase out the income tax, with the goal of eliminating it by 2031. Lawmakers plan to expand the sales tax base to include services and online purchases as a way to make up for the massive revenue cut.

Income tax makes up about two-thirds of the state's revenue.

Republican lawmakers argue that the state's tourism will make up for the revenue loss because out-of-state consumers will have to pay sales tax. The GOP also argues Missourians will take more home in their paycheck, and could choose to spend more, generating more sales taxes.

However, Missourians will have to pay that back at the grocery store, online subscriptions and purchases, and when they pay for services like haircuts or pet care.

Voters will have the final say at the ballot if the bill makes it through the Senate.

Check back for updates.