Missouri’s Neighbors Are Growing Faster. Why?
According to recent population data from the Population Reference Bureau, growth across the United States is being driven by states in the South and West. Meanwhile, others are stagnating or losing ground.
Missouri grew at a rate of 0.4%.
That leaves Missouri behind six of its eight neighbors.
Missouri came in ahead of only Iowa at 0.2% and erstwhile Illinois at 0.1%.
Income Tax Cuts Drive Growth
This trend is undeniable, both nationwide and in our region.
Among the neighboring states growing at a higher rate than Missouri are Tennessee, which currently levies no income tax, and two states that have already passed legislation putting them on the road to zero, Oklahoma and Kentucky.
In 2024, Arkansas cut taxes for the fourth time in two years. Governor Sanders has made it clear that her intention is to phase out the income tax in her state.
Iowa is catching up.
In 2018, they had a top rate of 8.98%. They had nine brackets.
Today, they have a single flat rate of 3.8%.
To get there, they used the same type of revenue triggers that Missouri is considering in HBs 173 and 174.
They just achieved their target. Now they’re considering the road to zero.
Without action, Nebraska will have a lower top rate than Missouri in 2027.
Kansas will be there after revenue triggers are hit.
How Can Missouri Win Again?
Missouri needs bold tax reform to reverse these growth trends.
Specifically, it needs a tax code that looks a lot more like Tennessee’s and less like Illinois’.
But more than that, we can’t fall further behind our neighbors.
They are cutting income taxes, and they’re doing it without social collapse. They’re moving to a more sustainable model that incentivizes people to move to their states.
It’s time for Missouri to get on board.
The State Senate will hear Missouri’s income tax elimination legislation in committee this week. Your voice matters right now. Send a message to your state senator.
Andy Bakker
Executive Director
Liberty Alliance USA