Missouri Senator Eric Schmitt is throwing his support behind Amendment 5, a constitutional amendment proposal to phase out Missouri’s income tax and supercharge the state’s economic prosperity.
Voters will have an opportunity make Missouri the next zero-income-tax state and lower the overall tax burden during the primary election on August 4.
Now a U.S. Senator, Eric Schmitt began his political career in the Missouri legislature, where he championed the first income tax reductions in state history and helped lower the rate from 6% to 4.2%. Amendment 5 would finish the job – and permanently ban income taxes for future generations of Missourians.
“It’s something that can differentiate Missouri – and we’re seeing real competition,” said Senator Schmitt, a Taxpayer Protection Pledge signer, on a television segment with Scott Faughn.
“Having more real take-home pay for people is critical,” he continued. “I don’t want to see us lose out – I think the states that have done it, they’ve done well.”
Indeed, the eight no-income-tax states boast significantly higher economic growth than their neighboring states. Low taxes, not geography, are the driving factor behind countless surveys including the U.S. Census and the U-Haul index, all of which show millions of families and businesses flooding to zero income tax states like Tennessee, Florida, and Texas.
That represents hundreds of thousands of new jobs and billions of new dollars of capital investment that fortifies the foundation of a state economy. Missouri could use some of that growth, especially after seeing their congressional delegation cut in half from 16 to 8 over the last several decades.
Sen. Schmitt also pointed out that phasing out the state income tax could finally differentiate Missouri among its regional competitors. While Tennessee is a worthy comparison, having finally repealed its income tax in full less than ten years ago, Amendment 5 gives Missourians a unique opportunity to leapfrog ahead of its other neighbors. Arkansas (3.6%), Iowa (3.8%), and Nebraska (4.55%) all have lower taxes than Missouri today, but that could quickly change if voters approve income tax elimination – giving Missouri a leg up in the fight to attract new residents and business.
Schmitt joins a cadre of prominent Missourians and political groups who are strongly in support of Amendment 5, including Congressman Mark Alford, the Missouri Republican Party, Governor Mike Kehoe (the original champion of the plan), Attorney General Catherine Hanaway, Americans for Tax Reform, Americans for Prosperity, the National Taxpayers Union, roughly two-thirds of state Senators and Representatives in Jefferson City, and dozens of coalition partner groups across Missouri.
