How can we be sure that this plan will work for Missouri? Look no further than our neighbor, Tennessee.
Tennessee has never had an income tax, and their state general revenue relies mostly on a 7% sales tax. Unlike other no-income tax states like Texas and Florida, it’s hard to find many differences between Tennessee and Missouri. We have Branson, Tennessee has Dollywood. Tennessee has the Smokies while we have the Ozarks. We share access to the Mississippi River and both border eight other states. Tennessee’s experience makes us confident that it’s possible for a state like Missouri to survive and thrive without an income tax.
Tennessee shows us not only that it’s possible, but also that it’s an asset. Several decades ago, Tennessee was much smaller than Missouri in State GDP and population. But Tennessee was able to catch up – and pass – Missouri by accomplishing faster growth without an income tax.
Tennessee also shows us that forgoing state income tax revenue doesn’t mean that state services will suffer.
In fact, Tennessee has a larger budget, funds a broader state health care plan, and has higher average teacher pay than Missouri – just a few ways the no-income tax model has produced better results for Tennessee.
A Model for Growth
If Tennessee can do it…
How can we be sure that this plan will work for Missouri? Look no further than our neighbor, Tennessee.
Tennessee has never had an income tax, and their state general revenue relies mostly on a 7% sales tax. Unlike other no-income tax states like Texas and Florida, it’s hard to find many differences between Tennessee and Missouri. We have Branson, Tennessee has Dollywood. Tennessee has the Smokies while we have the Ozarks. We share access to the Mississippi River and both border eight other states. Tennessee’s experience makes us confident that it’s possible for a state like Missouri to survive and thrive without an income tax.
Tennessee shows us not only that it’s possible, but also that it’s an asset. Several decades ago, Tennessee was much smaller than Missouri in State GDP and population. But Tennessee was able to catch up – and pass – Missouri by accomplishing faster growth without an income tax.
Tennessee also shows us that forgoing state income tax revenue doesn’t mean that state services will suffer.
In fact, Tennessee has a larger budget, funds a broader state health care plan, and has higher average teacher pay than Missouri – just a few ways the no-income tax model has produced better results for Tennessee.
For more information, read ‘The Missouri Compromise‘ by Art Laffer.