Missouri voters reject income tax proposal after bishops warned of its effects on ‘most vulnerable’

Fully 83% of the state’s voters opposed the measure, which would have eliminated the individual income tax and replaced it with a heavier reliance on sales taxes.

Voters in Missouri overwhelmingly rejected a proposal this week that would have eliminated the state’s income tax, a measure the Missouri Catholic bishops had warned could adversely impact the state’s poorest residents.

Results from the Missouri Secretary of State’s office on Aug. 5 showed 83% of voters rejecting Amendment 5, which if passed would have reduced and eventually eliminated Missouri’s income tax while allowing lawmakers to expand sales taxes.

Missouri’s four Catholic bishops in July had urged voters to consider “the moral principles that should guide us in pondering any tax proposal.” They had warned that the “most vulnerable” of the state’s residents could face undue burdens if sales taxes increased there.

The bishops had acknowledged that supporters of the income tax repeal had “a sincere desire to promote the long-term prosperity” of Missouri. But such aims should be “weighed alongside the potential effects on those who are most vulnerable,” they said.

The measure had been touted by state Republicans including Gov. Mike Kehoe, a Catholic, who said after the ruling’s defeat that the measure’s advocates “made the case that Missouri should think boldly about its future, challenge the status quo, and pursue policies that make our state more competitive.”

“I remain committed to working with the General Assembly in the years ahead on ways to continue cutting taxes, growing our state’s economy, and pursuing conservative policies that help Missouri families keep more of what they earn,” the governor said.

Advocates, meanwhile, hailed the defeat of the measure. The Washington, D.C.-based Institute on Taxation and Economic Policy described the measure in a blog post as “a blank check to raise or expand sales taxes,” one the group said would “enable enormous income tax cuts for the state’s wealthiest households.”

Voters who rejected the measure “set a positive example for states around the country, turning away from what would have been one of the most damaging tax policy changes in any state in recent years,” the group said.