There is no question that states that do not have an income tax are becoming more and more attractive to people and companies. It usually is noted in the press when a multimillionaire professional athlete moves to a no-income-tax state. It’s been going on for years.
Of interest of late is that the new owners of the Sacramento (Calif.) Kings will move the NBA team to Seattle because Washington is a no-income-tax entity. The tax savings will be substantial.
California has been a big loser of people and companies that have moved to friendlier tax states, such as Florida and Texas.
Missouri’s state income tax is low, one of the lowest in the nation. We don’t think there’s much hope with the Missouri income tax being dropped. Missourians are slow to make changes in anything, even if neighbor Kansas is fast becoming a friendly tax state. The present income tax revenue would have to be replaced with another tax, which probably wouldn’t be acceptable to Missouri voters.
But there is no question states with no income tax do attract wealthy people and some companies.
Rex Sinquefield, retired investment company owner and philanthropist, would like to see the earnings tax in the city of St. Louis be eliminated, along with the easing of state taxes. He advocates tax reforms that he believes will bring growth to Missouri and St. Louis, where he lives. He funds organizations that are “think tanks” in an effort to educate politicians and the people on issues of the times. He means well but hasn’t been too successful. He has been a heavy contributor to some political candidates.
Our Missouri leaders should take note that no-income-tax states are becoming more and more popular as places to live and operate a business.