This tax reform bankrupted Kansas. Missouri wants to take it further
AI-generated summary reviewed by our newsroom.
- Kehoe proposes eliminating Missouri income tax; lawmakers plan debate in January
- Critics warn Kansas 2012-17 tax cuts led to budget shortfalls and tax increases
- Eliminating income tax could force spending cuts or new taxes to fill revenue gaps
Hello, Star readers.
Today, we’re taking a look at Gov. Mike Kehoe’s bold plan to eliminate the income tax in Missouri. Critics say an ill-fated tax experiment in Kansas should serve as a cautionary tale.
Next, we’ll get into:
• Epstein vote: After months of anticipation, Congress finally took up a bill calling for the DOJ to release its files on Jeffrey Epstein. Here’s how Kansas and Missouri lawmakers voted.
• Hemp boom busted: A sweeping federal ban on hemp products recently signed into law by President Donald Trump could spell disaster for a thriving industry in Kansas City.
This week in politics
The proposal Kehoe floated to eliminate the state income tax so far includes no specifics. It’s unclear whether he wants to see the tax eliminated gradually or all at once.
But statements from the governor’s office and top GOP lawmakers suggest the major reform could be a top legislative priority when the General Assembly convenes in January.
“Governor Kehoe believes eliminating Missouri’s income tax is critical to ensuring that Missouri is a competitive and thriving state for businesses and families,” Kehoe spokesperson Gabby Picard told The Star.
The extraordinary move would drastically change how Missouri funds its operations and services, and could require lawmakers to slash spending or raise other taxes to account for a significant decline in revenue.
Critics of the plan say it’s reminiscent of the sweeping tax cuts spearheaded by former Kansas Gov. Sam Brownback, which included deep income tax cuts and were intended to stimulate the state economy.
Instead, the 2012 and 2013 tax cuts resulted in significant budget shortfalls by 2014 and an increase in sales taxes in 2015. A bipartisan coalition of lawmakers ultimately repealed the tax cuts in 2017.
On his road to becoming governor, Kehoe touted his work with economist Art Laffer, who helped advise Brownback on the creation of the Kansas tax plan. Kehoe’s campaign suggested that he was working with Laffer on “a plan to lower the tax burden on Missourians.”
Read the full story from my colleague Kacen Bayless.
More from this past week
• Exclusive: Kansas City quietly paid former City Manager Brian Platt hundreds of thousands more than what was initially reported after he was fired, records obtained by The Star show.
• A rural Kansas county’s sheriff’s office signed off on a warrant to raid a small-town newspaper. Now, the county has to shell out $3 million — and issue an apology.
• As frozen SNAP benefits stoked food insecurity in Jackson County, one Kansas City teacher found a way to deliver nutritious snacks to students.
• Could this upgrade to Arrowhead Stadium keep the Chiefs in Missouri? Kehoe thinks so after he recently floated the idea to reporters.
Looking for more?
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That’s all for now! See you next week.
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