A proposal moving through the Missouri General Assembly could dramatically change how the state collects taxes — and some Kansas City lawmakers say the plan could shift more of the cost of government onto working families.
The proposal would gradually eliminate Missouri’s income tax and replace it with a broader sales tax that could apply to many goods and services that currently are not taxed.
Supporters say the change would modernize Missouri’s tax system and eventually reduce taxes on income. But Democratic lawmakers from Kansas City — including State Reps. Mark Sharp and Michael Johnson and Sen. Barbara Washington — say the plan could raise new taxes in places Missourians aren’t used to paying them.
How the Proposal Would Work
Missouri currently collects taxes in two main ways: through income taxes and through sales taxes on most goods.
The proposal would allow lawmakers to expand the sales tax to many goods and services that are currently untaxed, while gradually reducing the income tax until it eventually disappears.
The proposal focuses on eliminating Missouri’s individual income tax — the tax people pay on their wages. Income taxes on corporations, estates and trusts would remain in place.
Supporters say that would allow workers to keep more of their paychecks. Critics argue that replacing billions in lost income-tax revenue would likely require expanding sales taxes to many more goods and services.
That means lawmakers could potentially apply sales taxes to services such as haircuts, plumbing work, auto repairs, legal services and other professional services.
It could also open the door to sales taxes on things that currently have special protections — including gasoline — though some supporters say they do not intend to tax fuel.
For many Missourians, that would represent a major shift in how they experience taxes. People who are used to paying sales tax mainly on retail purchases could begin seeing taxes added to many everyday services.
Why Some Lawmakers Oppose the Plan
Rep. Mark Sharp said he worries the change would move more of the tax burden onto people who already struggle financially.
“The shift in the tax burden to the sales tax disproportionately affects working families,” Sharp said. “They’ll be spending a larger share of their income on everyday goods and services.”
Sharp said many residents in the communities he represents are already working to climb out of financial hardship.
“We have so many people who are underserved in our community,” he said, warning the proposal could make it harder for families trying to get ahead.
Johnson also explained how eliminating income taxes could change the way Missourians contribute to state revenue.
Right now, income taxes are tied to how much people earn.
“If some of y’all out there make $400,000 a year, people like me might make $40,000 a year,” Johnson said. “They’re going to look at a percentage of your income and determine your contribution.”
If income taxes disappear, Johnson said the system would look very different.
“I make $40,000, another person makes $400,000, another person makes $2 million — we’re all going to pay taxes at the gas station, at grocery stores and everywhere else.”
Johnson described the proposal as shifting Missouri toward a tax structure that could hit lower-income households harder.
“It’s a tax that hurts the people who make the least money and gives the biggest discount to those who make the most money,” he said.
Why Some Lawmakers Say Missouri Is Different
Supporters of eliminating income taxes often point to states such as Tennessee or Texas that rely heavily on sales taxes instead.
But Sharp and Johnson argue Missouri does not have the same economic advantages as those states.
Missouri does not have the level of tourism revenue seen in places like Nashville, Tennessee, and it does not have oil revenues like Texas.
Without those sources of income, they say Missouri may struggle to replace billions of dollars in income-tax revenue.
Concerns About Funding State Services
Lawmakers also question how the state will replace the billions of dollars currently collected through income taxes.
Missouri collected more than $9 billion in income tax revenue last year, which helps fund schools, health care programs, roads and other services.
Sharp warned that removing that revenue source could put pressure on the state budget.
“This could threaten our funding for education, infrastructure and municipal services,” he said.
What Happens Next
The proposal has passed the Missouri House and is expected to be taken up by the Senate.
If the Senate approves it, the measure would not immediately change taxes. Instead, it would place the issue before Missouri voters as a constitutional amendment — potentially as soon as the November 2026 ballot.
Voters would then decide whether to allow lawmakers to begin the process of phasing out the income tax and expanding the state’s sales tax system.
Johnson said that means residents need to pay attention to the debate now.
“People need to know how bad this is,” he said, urging voters to stay informed about what the proposal could mean for their wallets.
For now, the debate centers on a fundamental question: whether eliminating the income tax would truly reduce taxes — or simply move them to places Missourians have never paid them before.