JEFFERSON CITY 鈥 Lt. Gov. Mike Kehoe wants to eliminate Missouri鈥檚 income tax, but he isn鈥檛 detailing his plan to do so until after a 鈥渟uccessful鈥澛爀lection for governor on Nov. 5.
To develop his plan, the Republican candidate is leaning on a policy team that includes economist Art Laffer, the chief architect of income tax cuts in Kansas that and cuts to services, and Jim Talent of Chesterfield, a former one-term Republican U.S. senator from Missouri.
鈥淜ehoe鈥檚 tax plan, which will be rolled out after a successful November 5th election, will pave the way for even more responsible tax cuts to put money back in Missourians鈥 pockets,鈥 Gabby Picard, spokesperson for Kehoe, said in a statement.
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Picard noted the lieutenant governor鈥檚 support for past cuts to Missouri鈥檚 top income tax rate, which will fall to 4.7% next year from 6% after multiple GOP-led income tax cuts.
鈥淭he policy team developing this plan to eliminate the income tax includes鈥 Laffer and Talent, Picard said.
Without detailed plans from Kehoe, questions remain regarding programs to be cut, or other taxes to be raised, if Missouri were to eventually join other Republican-led states such as Florida and Tennessee in ending a state-level income tax.
House Minority Leader Crystal Quade, the Democrat running against Kehoe, said it was frustrating for Missouri voters to hear that Kehoe would unveil his plan later.
鈥淧eople want to know what the governor candidates are going to provide for them,鈥 Quade said. 鈥淭he fact that Kehoe and his team are relying on the same folks who, you know, essentially destroyed Kansas鈥 economy is a really scary thought.鈥
In the fiscal year ending in June, income tax collections after refunds made up about 63% of Missouri鈥檚 total general revenue collections at roughly $8.5 billion of $13.4 billion in total general revenue.
General revenue will make up about 30% of Missouri鈥檚 overall operating budget in the current fiscal year. It is the primary funder of the Department of Corrections, the state鈥檚 judiciary system, and the Department of Higher Education and Workforce Development.
The biggest piece of general revenue in the current state budget is for the Department of Elementary and Secondary Education at nearly $4 billion.
The Department of Social Services is slated to receive the next largest piece of general revenue at nearly $2.8 billion; the Department of Mental Health was allocated $1.6 billion in general revenue; and the Department of Higher Education and Workforce Development was the fourth-largest general revenue recipient at nearly $1.3 billion.聽
Amy Blouin, president and CEO of the left-leaning Missouri Budget Project, said eliminating the income tax would 鈥渕ean an $8 billion cut to state services鈥 and no good way to replace the revenue.
鈥淚 know that this is being discussed,鈥 she said in an interview Tuesday. 鈥淏ut I鈥檓 not sure that anybody really wants to actually do this 鈥 not in reality.鈥
While income tax collections generated $8.5 billion for general revenue last fiscal year, the next largest source of general revenue 鈥 sales and use tax 鈥 brought in $3 billion for the state鈥檚 general coffers, according to a review of state budget records.
鈥淥ur sales tax is already particularly high compared to other states,鈥 Blouin said. 鈥淓very time we increase the sales tax, it creates much more of a burden on low- and middle income families.鈥