Missouri Considers Ending Income Tax, Reducing Sales Tax, Buying Gold & Silver With Surplus

JEFFERSON CITY, Mo. — A bold plan to axe the individual and corporate income taxes, slash the sales tax, and stock-up on gold and silver is making its way through the Missouri Senate.

Senate Joint Resolution 31, sponsored by Sen. Ben Brown, would not only eliminate the individual income tax but also channel surplus funds into buying gold and silver. But it would do it in a step-by-step process

Step 1: Ending the Income Tax

If Brown's bill clears the legislature and governor's desk, and Missouri voters approve it, starting January 1, 2027, residents would no longer pay state income tax on their earnings.

Step 2: Tying The Budget To The Population Size

The amendment then introduces tight controls on state spending. If passed, beginning July 1, 2027, the state’s budget would be linked to population changes. Growth in population could allow for increased spending, but if the population stagnates or declines, the budget would have to shrink accordingly.

It also establishes the "Tax Reform Fund" and the "Budget Responsibility Fund" in the state treasury. For every year that state tax revenues are at a surplus of $1 million or more over the budgeted amount, that money would be equally divided between those two funds. The Tax Reform Fund would be accessible for any years in which there were a budget shortfall, and it would also help fund the next steps...

Step 3: Shrinking The Sales Tax

Currently, Missouri's sales tax is 4.225%. But SJR 31 bill stipulates that for every year in which state revenues are at a surplus of $1 million or more, the sales tax would be reduced (a formula for reduction is provided in the bill, and it's based on how much money is in the newly created Tax Reform Fund -- the idea being not to reduce the sales tax so quickly that this "emergency fund" gets depleted). The goal of the language is to reduce the sales tax to 4%, after which it would not be allowed to exceed 4%.

Step 4: Ending The Corporate Income Tax

Once the state sales tax is reduced to 4%, the legislature would use a similar method (with the Tax Reform Fund as a backstop) to reduce the corporate income tax, until that tax is completely eliminated.

Step 5: Buy Gold & Silver

Finally, once the income tax is eliminated, the sales tax is reduced to 4%, and the corporate income tax is eliminated, the amendment requires the remaining balance in the Tax Reform Fund to be transferred to the newly created Strategic Gold & Silver Reserve Fund, which would be used to buy gold and silver.

The bill was voted out of the Economic and Workforce Development Committee on Wednesday, Feb. 19.

View the full bill here.