The Market Institute has joined a broad coalition of national and state-based organizations urging the Missouri General Assembly to support Governor Mike Kehoe’s Missouri Promise—a responsible, trigger-based plan to phase out the state individual income tax and modernize Missouri’s outdated tax system. Missouri-Letter
Missouri’s current income tax structure dates back to 1931, an era when the state’s economy, workforce, and technology looked nothing like they do today. Yet under the existing system, Missourians earning just over $9,000 annually are pushed into the top marginal tax rate—an anachronism that no longer reflects modern incomes or economic realities.
As the coalition letter explains, decades of temporary fixes and carveouts have produced a tax code that is complex, inefficient, and increasingly disconnected from how Missourians live and work. Governor Kehoe’s proposal takes a different approach: not a short-term patch, but a structural reform designed to reward work, attract investment, and position Missouri for long-term growth.
Missouri Is Falling Behind the National Trend
Across the country, states are moving decisively toward lower and simpler income taxes. Nine states now levy no broad-based individual income tax, while more than two dozen others have enacted rate reductions, flat taxes, or trigger-based reforms over the past decade.
Importantly, these reforms are not limited to red states. Leaders across the political spectrum—from Mississippi and Oklahoma to Colorado—have publicly recognized that taxing work and productivity undermines growth and competitiveness.
The economic results speak for themselves. States without income taxes are outperforming high-tax states on population growth, job creation, income growth, and net migration. Americans are increasingly voting with their feet, choosing states that reward work and investment over those that penalize it.
Learning the Right Lessons from the Past
Opponents of reform often point to Kansas’s early-2010s tax changes as a cautionary tale. But as the coalition letter notes, Kansas itself has moved on—adopting more disciplined, bipartisan reforms that reflect lessons learned over the past decade.
Today’s successful tax reforms are built on clear revenue triggers, spending discipline, and transparency. Governor Kehoe’s proposal follows this proven model, ensuring Missouri can modernize its tax system without jeopardizing core public services.
A Responsible Path Forward
The coalition urges Missouri lawmakers to:
- Publicly support the goal of phasing out the individual income tax;
- Work with the Governor to design a responsible, trigger-based path to zero; and
- Reject efforts to derail reform by protecting narrow carveouts or clinging to outdated tax structures.
Missouri has a clear choice: continue operating under a Depression-era tax code—or join the growing number of states embracing pro-growth tax reform that attracts families, businesses, and opportunity.
The Market Institute is proud to stand with Governor Kehoe and a broad coalition of policy organizations in support of the Missouri Promise.
Missouri-Letter
