Tax Reform

ALEC Policy Champions Advance Income Tax Elimination in Missouri

Congratulations to Governor Mike Kehoe, Missouri Speaker Jon Patterson, Rep. Bishop Davidson, Rep. Ben Keathley, Rep. Darin Chappell, Rep. Bill Hardwick, Sen. Curtis Trent, and Sen. Ben Brown for taking a historic step towards a more competitive Missouri, where workers can keep more of what they earn.

ALEC is proud to recognize Governor Mike Kehoe, Missouri Speaker Jon Patterson, Rep. Bishop Davidson, Rep. Ben Keathley, Rep. Darin Chappell, Rep. Bill Hardwick, Sen. Curtis Trent, and Sen. Ben Brown as ALEC Policy Champions for the leadership and initiative in advancing HJR 173/174, which could lead to the complete elimination of the state income tax. This aligns directly with ALEC recommendations for pro-growth tax policy featured in Essential Policy Solutions for 2026.

HJR 173/174 will put the question of income tax elimination before Missouri voters later this year, using revenue triggers to lower the rate gradually. If approved, the measure would enable economic growth, simplify the tax code, and ensure reliability for taxpayers, in line with the ALEC Principles of Taxation.

For 19 years, ALEC has published Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, which identifies personal income tax rates as one of the most consequential levers state policymakers can control in the race to create economic opportunity and attract job creators. Missouri, in the most recent edition, has improved from 24th to 19th due to its prior rate reductions and the elimination of the capital gains tax last year. If the state were to fully eliminate its income tax, it would join the ranks of the top states.

Missouri is not alone on the path to lowering its income tax rate. States like Kentucky and Oklahoma have both instituted phase-out plans. This legislation in the Show Me State puts Missouri taxpayers first by pursuing fiscally responsible, pro-growth reforms.

Congratulations to Governor Mike Kehoe, Missouri Speaker Jon Patterson, Rep. Bishop Davidson, Rep. Ben Keathley, Rep. Darin Chappell, Rep. Bill Hardwick, Sen. Curtis Trent, and Sen. Ben Brown for taking a historic step towards a more competitive Missouri, where workers can keep more of what they earn.


In Depth: Tax Reform

Mainstream economists, small business owners and taxpayers across the country understand that growth-oriented reforms mean increased opportunity for all. As demonstrated by the annual Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index, sound tax and fiscal policies are critical to economic health, allowing businesses and households to flourish. A…

+ Tax Reform In Depth