Senator Mike Bernskoetter

6th Senatorial District

For Immediate Release: 

Jan. 31, 2025

Capitol Building, Room 416

Jefferson City, MO 65101

Contact Kenny Ross: 

 573-751-2076

The Importance of Cutting Taxes for Missouri Economic Growth

This week we heard from the governor during his first State of the State address. I was heartened to hear him talk so much about the importance of cutting taxes here in Missouri to help drive economic growth and bring prosperity to our state.

Missouri’s economy benefits when policies are designed to encourage investment, entrepreneurship and workforce retention. Reducing the state income tax would be a crucial step in achieving these objectives. Lower income taxes leave more money in the hands of Missourians – the people who know best how to spend their money. Additionally, increased consumer spending benefits local businesses – from small businesses to larger companies – creating ripples across communities. With more money available, consumers spend more which leads to more money in the economy, which in turn grows Missouri businesses and the cycle continues.

Cutting taxes also makes Missouri a more attractive destination for businesses and individuals who will contribute to the growth of Missouri. Companies and workers often choose locations with favorable tax climates. States like Texas, Florida and Tennessee, none of which state income taxes, consistently attract businesses and residents away from states with higher taxes. By reducing the income tax in Missouri, we can compete more effectively with these states. 

Lower taxes also incentivize innovation, leading to new, homegrown Missouri businesses. Entrepreneurs are more likely to take risks and start new businesses when they face a lower tax burden. Small businesses, the backbone of Missouri’s economy, operate on tight margins. Cutting taxes helps them expand and innovate because every dollar they can keep, rather than give to the government, is another dollar they can use on their business. 

Opponents may argue that cutting income taxes could lead to reduced funding for essential public services by shrinking revenue available to the state. I do not agree with that premise because I believe that cutting taxes will lead to greater economic growth in Missouri. More growth leads to greater sales tax collections. I believe Missouri can cut income tax while also maintaining a strong fiscal footing in the Missouri budget. 

Hearing the governor expound on these principles during the State of the State address this week fills me with hope that Missouri’s best days are ahead of us. I believe we can create and foster a climate of economic growth and prosperity that will see Missouri continue to lead the nation in job growth. We are blessed with abundant natural resources, a prime location in the middle of the nation and a population that is full of educated and motivated workers. It is now time for us to create a tax code that can support this economic growth.

Please feel free to contact my office at 573-751-2076. For information about my committee assignments or sponsored legislation, please visit my official Missouri Senate website at senate.mo.gov/Bernskoetter.