The Missouri Sales Tax Ripoff

Missouri seeks to restructure its tax system to benefit the wealthy - again

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Missouri, we need to talk.

Because once again, legislators in Jefferson City are pushing a plan that would shift a huge tax burden onto working families while cutting taxes for the wealthy. The scheme is documented in House Joint Resolution 174, sponsored by Representative John Patterson. HJR 174 is currently working its way through a House committee as I write this.

If HJR 174 passes through the state legislature and is signed by the governor, it still must go before the people for a vote this November. But if Missouri’s voters approve it, the amendment would take effect. It would ultimately prohibit Missouri from collecting an individual state income tax. And it would force lawmakers in Jefferson City to restructure Missouri’s entire tax system around sales and use taxes.

The alarm bells are ringing.

Here’s the problem: Missouri’s income tax, imperfect as it is, is still mostly progressive. People who earn more generally pay more. Sales taxes are the opposite. Because everyone pays the same rate, sales taxes hit working families much harder than wealthy families. A working family household might save $1,000 in state income tax, but because they spend most of their income on necessities, they could end up paying $2,000 more in sales taxes. Worse yet, many elderly people on fixed incomes don’t pay any state income taxes. They already pay sales tax, but HJR 174 would greatly increase it, creating additional financial hardship.

How does HJR 174 work? It would expand the sales tax “base.” In other words, you wouldn’t just pay taxes on products — you’d also pay taxes on services like doctor visits, braces for your kid, car repairs, and even online subscriptions. As written, HJR 174 does not set clear limits on what can be taxed, leaving it to future legislatures to decide. (It also temporarily sidesteps protections in the Hancock Amendment.) Lawmakers are asking you to trust them, even as they repeatedly undermine statutes and constitutional amendments that Missourians have directly voted for.

Supporters frame HJR 174 as “tax relief.” What they are really doing is changing how Missouri collects taxes rather than addressing the financial reality facing working families and the elderly. Meanwhile, roads still need maintenance. Schools still need funding. Hospitals still need support. When income taxes disappear, that money has to come from somewhere.

It will come from you.

Bottom line: this proposal, if passed and approved by voters, would permanently change Missouri’s tax structure in a way that forces many working families and the elderly to pay far more at the cash register than they will ever save in income taxes.

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