JEFFERSON CITY, Mo. (KY3)—Lawmakers want to eliminate Missouri’s income tax, but budget experts are concerned about how they would account for the gaping hole this would leave in the state’s budget.
The topic heating up in the Missouri Senate hearing room on a cold and snowy day is tax cuts. Missouri state senators are discussing a proposal to eliminate Missouri’s income tax by 2027.
Under this proposal, income tax revenue would be replaced with sales taxes on services that are not currently taxed, such as haircuts or real estate transactions. Income tax makes up more than half of Missouri’s general revenue, which is the money left to be spent; more money has already been allocated to specific state departments. About 60 percent of Missouri’s general revenue comes from income taxes…