JEFFERSON CITY, Mo. - Missouri lawmakers could consider a proposal next year that aims to gradually eliminate the state's income tax.

Currently, the state of Missouri has a progressive income tax that taxes individuals based on their taxable income in a given year. These tax rates range from 2% to 4.95%, according to the Missouri Department of Revenue.

Missouri House Rep. Bishop Davidson (R-Republic) has introduced House Joint Resolution 1, which could pave the way for registered voters to decide whether to phase out the state's income tax through a constitutional amendment.

The proposal calls to establish a "Tax Reform Fund" in the Missouri State Treasury to gradually reduce income taxes. Starting in 2027, any surplus revenue over $1 million from income tax expenditures would be deposited into the fund that accumulates over time.

Once the fund meets certain thresholds, the Missouri legislature would authorize reductions in income tax rates with the goal of eventually eliminating them entirely. The first reduction, as outlined in the proposal, would be "a personal income tax decrease trigger of one-tenth of one percent or greater" once the tax reform fund reaches $120 million.

The proposal calls for reductions in both personal and corporate income taxes after the tax reform funds meet certain conditions.

The proposal, if approved by both Missouri lawmakers and voters, could reshape the state's tax structure but could also impact public services.

State income taxes are essential in supporting programs for education, healthcare, infrastructure, and public safety. Because of that, some concerns may arise over the future of such programs if the state's income tax is reduced or eliminated.

The Missouri Budget Project, a nonprofit that specializes in state budget analysis, says Missouri is 45th in the amount of state revenue it collects per person and 43rd in the amount it spends per person, suggesting that further tax reductions could strain the state's ability to adequately fund essential services and programs.

House Resolution 1 has been preemptively filed for the state's 103rd General Assembly for the 2025 legislative session, which is set to begin January 8.