JEFFERSON CITY — Three hours of heated debate on the House floor Tuesday preceded a vote granting initial approval for a joint resolution that would eliminate Missouri’s income tax.

House Joint Resolutions 173 and 174, carried by Rep. Bishop Davidson, R-Republic, and Speaker of the House Rep. Jonathan Patterson, R-Lees Summit, would phase out individual income tax while allowing the legislature to increase sales or use tax in the state to fill revenue gaps if approved by voters. If the General Assembly approves the proposal, residents in Missouri would vote in November on the resolution.

“We believe that as Missourians grow their economy, Missourians ought to benefit from the growth of that economy,” Davidson said.

The resolution would reduce the individual income tax each year by 0.01% for every $20 million in the state’s net revenue. These reductions would be capped at 1.6% per year.

The individual income tax would be eliminated after the rates reach 1.4%.

Supporters of the bill said the elimination of individual income taxes would be a major benefit to the average Missouri resident and could attract others to the state.

“(The resolution) gives us more time, powers, to stop the bleeding of our number one resource,” said Rep. Brian Seitz, R-Branson. “That being your citizens, entrepreneurs, and those who are struggling to make ends meet by moving to a different state.”

“It’s a win, it’s a win, it’s a win,” Seitz added.

Opponents of the resolution expressed concerns that Missouri residents may not be aware that sales or use taxes could be raised to offset the loss of individual income tax revenue.

“You are asking the average voter to vote to raise their taxes in ways and amounts that you will decide later without that vote,” said Rep. Mark Boyko, D-Kirkwood.

The resolution would allow the legislature to broaden sales and use taxes to certain services that are currently exempt.

The resolution also allows the legislature to make changes to sales and use taxes to make up for the loss of revenue from the individual income tax. Any increases or changes to sales taxes would be determined by the legislature in a future session if voters approve the resolution.

During his State of the State address, Gov. Mike Kehoe said the elimination of income tax was one of his top priorities for the year. He also said that he would like sales tax exemptions for agriculture, real estate and health care as part of the proposal. The current resolution does not include any exemptions.

Opponents of the bill said the ballot language was insufficient and could confuse voters. The current ballot language states that the resolution would “modernize the sales and use tax” without explaining that the resolution allows for sales and use taxes to increase.

Rep. Mark Boyko, D-Kirkwood, said the resolution was likely going to benefit the wealthiest Missouri residents. Boyko said wealthy Missouri residents are already benefiting from the elimination of the capital gains tax last year, and that the removal of individual income taxes would likely hurt the poorest populations the most.

“Last year we gave billionaires their break on capital gains, and this year we look to be giving multi-millionaires their break,” Boyko said.

The current top income tax rate in Missouri is 4.7%, and has been reduced over time from a 6% rate in 2015. During fiscal year 2025, income tax revenue was the state’s largest general revenue source, making up 65% of revenue.

Nine states have eliminated their income tax, including Texas, Tennessee and Florida.

Opponents of the bill said that while the elimination of income tax may work in other states, this taxation model would not work for Missouri. Rep. Ian Mackey, D-St. Louis, said that many states that have eliminated the income tax have more robust industries, which were taxed to make up revenue losses.

“When Tennessee eliminated their income tax, it made up 1% of their budget. One percent,” said Rep. Ian Mackey, D-St. Louis. “Our income tax makes up over 60% of our budget. What a silly analogy, folks.”

Though he opposed the bill, Mackey said that he hoped the bill would pass.

“I hope it passes here, I hope it passes the Senate, it goes on the ballot, and I hope voters approve it,” Mackey said. “And then I hope what happens is we go bankrupt, everything falls apart, we get what we deserve, and the Democrats come back to win.”

“It’s the best case scenario,” he added.

Supporters said they wanted to put the measure on the ballot so the average voter would be able to decide what they are taxed on.

“No one in this room is going to do anything other than put (the resolution) on the ballot and allow Missourians to determine what their tax structure will be,” said Speaker Pro Tem Chad Perkins, R-Bowling Green.