Missouri Governor Pitches Phasing Out Individual Income Tax

Missouri Gov. Mike Kehoe called on lawmakers to put a question before voters that would allow the state to eliminate its personal income tax.

Kehoe (R) said in his State of the State address Tuesday the move would help Missouri compete with states like Tennessee and Texas, which have no personal income tax. The repeal would be phased out over five years, he said. Personal income tax collections accounted for more than 60% of the state’s general revenue in the last fiscal year.

He also proposed “closing loopholes” by extending the state’s sales tax to digital services including online advertising, ...