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Amendment 5 Means Higher Costs for Missourians
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As Missourians consider Amendment 5, which would eliminate the state income tax, it’s important to understand what it really means – especially for older adults living on fixed incomes.
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Amendment 5: Why Missourians Should Vote NO
Missourians deserve tax policies that are fair, sustainable, and protect the services families rely on every day. Amendment 5 would make sweeping changes to Missouri’s tax system by eliminating the state income tax and shifting the burden to higher and broader sales taxes. While supporters may present the proposal as tax relief, the reality is that many retirees and older Missourians would see higher costs with little or no benefit.
Amendment 5 Opens the Door to Higher Taxes on Everyday Purchases
Amendment 5 would eliminate Missouri’s income tax without providing a reliable replacement for the billions of dollars in state revenue it generates. To make up for those losses, the measure allows lawmakers to increase sales taxes, expand sales taxes to services, or implement both.
For many Missourians – especially retirees – this means paying more every time they purchase good or services. Because older adults typically spend a larger share of their income on everyday necessities, the shift from income taxes to sales taxes could result in higher overall tax burdens.
Key Point: Amendment 5 eliminates the income tax but opens the door to higher and new taxes on sales and services that retirees cannot avoid.
Most Retirees Already Receive Significant Income Tax Relief
Missouri already provides substantial tax advantages for retirees. Social Security benefits are fully exempt from Missouri income tax, and most public pension income is also exempt up to the Social Security maximum.
As a result, nearly nine out of ten Missourians age 65 and older already pay little or no state income tax. For these individuals, Amendment 5 would provide little additional tax relief while exposing them to potentially higher sales taxes on everyday expenses.
Key Point: Retirees already receive income tax relief. Amendment 5 offers little new benefit while increasing the risk of higher costs.
Fixed-Income Households Could Pay More
Retirees living on fixed incomes are particularly vulnerable to increases in sales taxes. Unlike income taxes, sales taxes are paid every time consumers purchase taxable goods and services. When costs rise, fixed incomes often do not.
Because many retirees already pay little or no state income tax, they would not receive meaningful savings under Amendment 5. However, they would still be required to pay higher sales taxes if lawmakers use them to replace lost state revenue.
Key Point: When your income stays the same, higher and broader sales taxes become an unavoidable financial burden.
Essential Services Could Face Significant Funding Cuts
Missouri’s income tax provides a substantial share of the state’s general revenue. Eliminating that revenue source could create a multi-billion-dollar gap in the state budget.
Without sufficient replacement funding, Missouri could face difficult decisions that affect programs and services used by older adults and their families. Services that could be impacted include:
- Home and community-based services
- Public transportation programs
- Long-term care supports
- Other programs that help older adults remain independent and age in place
These services play a critical role in helping older Missourians stay healthy, connected to their communities, and able to live in their own homes for as long as possible.
Key Point: Eliminating this level of revenue could put important services for older Missourians at risk.
Amendment 5 Would Lock a Risky Tax Structure into the Missouri Constitution
Perhaps most importantly, Amendment 5 would embed this tax framework into the Missouri Constitution. Constitutional changes are far more difficult to modify than ordinary legislation.
If the policy fails to deliver its promised results, creates budget shortfalls, or leaves Missouri unprepared for future economic challenges, state leaders would have limited flexibility to respond.
Key Point: Amendment 5 locks Missouri into a risky tax experiment with no easy way to make changes if problems arise.
The Bottom Line
Missouri already provides meaningful income tax protections for retirees. Amendment 5 would shift Missouri’s tax burden away from income and toward everyday purchases, potentially increasing costs for older adults and families across the state.
At the same time, it could reduce funding available for essential services that help adults 65+ live independently and remain active in their communities.
For retirees, families, and communities throughout Missouri, a NO vote on Amendment 5 is a vote to protect affordable living, preserve critical services, and maintain flexibility for Missouri’s future.
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