MO Lawmakers Propose Sales Tax Hike for Veterans

0:00It's March 25th. Welcome to Kansas News Today, powered by AI. Missouri lawmakers are pushing a plan to scrap the state income tax and replace it with an expanded sales tax. Right now, active military members and disabled veterans get a big break by not paying that income tax, which helps their paychecks go further. But under this change, they lose that advantage and face the new sales tax just like everyone else. The proposals, House Joint Resolutions 173 and 174 aim to shift funding since income tax makes up about 68 percent of the state's general revenue. Governor Mike Keeho notes exemptions for things like health care and real estate, hoping out of state visitors help cover costs through sales taxes. Veterans groups worry this hits their most vulnerable hardest, especially low income retirees and those on fixed benefits. Several leaders point out everyday items could get pricier, adding strain when costs are already rising.

1:01Military families are feeling the pinch too, with more calls to groups like the Red Cross for help with jobs, car repairs, or food. That income tax exemption acts as key extra support amid inflation. The bills pass the House back in early March and now sit in a Senate committee. If approved there, voters would decide in November, giving everyone a say on whether this levels the field or leaves heroes behind.