We’re getting closer to the truth.

The Missouri Western District Court of Appeals ruled Friday that the ballot language for Amendment 5 needed to be clarified for voters before it appears on the ballot in the Aug. 4 primary. Initial language did not disclose the fact that the amendment can create new taxes on previously untaxed goods and services.

Amendment 5 proposes to eliminate the state income tax.

At face value, doing away with income taxes might sound like a good thing, but let’s not be hasty in voting “yes” on this amendment. This looks to be a carefully concealed bear-trap, waiting for unsuspecting voters to give the amendment a nod of approval. If that happens, the trap will spring, with not much chance of escape for those who live paycheck to paycheck – including senior citizens like me.

The full extent of the consequences of approving Amendment 5 is unknown. A few aspects, however, are known.

It will allow new goods and services to be taxed, something the original ballot language did not disclose, but does now. Among many other items, real estate transactions can be taxed if the amendment passes.

The amendment will also give the Missouri legislature and the state auditor a full set of keys to the kingdom: the unhampered ability to raise tax rates without voter approval, including rates for constitutionally-established, voter-approved taxes like the Parks, Soils and Water (PSW) Sales and Use tax. The PSW tax will also appear on the August 4 ballot, as Amendment 1, for 10-year voter approval.

Combined individual state income taxes have historically been the state’s largest source of revenue. According to the Missouri Department of Revenue’s annual financial report for fiscal year 2025, which ended on June 30 last year, individual income taxes generated over $9 billion. That number represents almost double the amount of the next largest source of revenue, Sales and Use taxes, which generated over $5 billion.

A loss of $9 billion in revenue will have to be replaced somehow. The state can’t operate on fumes. The responsibility for making up the individual income tax deficit will still fall on individuals – with the preponderance, almost certainly, falling on us small turtles who depend on a weekly or monthly paycheck to eat. With increased taxes on goods and services – some previously untaxed – the price for our needs can increase exponentially.

While Missouri residents paid over $9 billion collectively in income taxes in 2025, corporations paid nine times less than that amount: just under $1 billion for the year. The difference between the two amounts is worth noting.

Another tax category worthy of consideration is that of pass-through entities, which paid just over $7 million in taxes in 2025.

According to the DOR, pass-through entities (as I understand the explanation) are corporations from out of state who want to do temporary business in Missouri. Those corporations will be taxed at the same rate as the individual income tax rate (perhaps zero, if Amendment 5 passes), and the hosting, in-state corporations will receive tax credits for letting out-of-state companies operate within Missouri.

Whichever way you cut it, individuals are floating Missouri’s economy far and above corporations, those both in-state and out-of-state.

If we give a yes to Amendment 5, those in the top financial echelons will benefit further, while those at the lower end of the scale – the majority of Missourians – will face higher prices on the goods we buy that are already taxed, plus new taxes on goods and services that were previously untaxed.

Meanwhile, Big Yertle, at the top of the heap, will continue to feed his corporate cronies with tax credits.

Yes, it’s likely to encourage large corporations to set up shop in Missouri. Who doesn’t want to move where taxes are cheap and water is plentiful? Data centers come to mind. But we lowly turtles can’t fill our bellies with data, nor many of the other products large corporations produce.

Although our Republican governor is promoting this tax-restructuring amendment, Amendment 5 is not a Republican nor a Democrat issue. If passed, Amendment 5 will affect each and every one of us — no matter our stripe — while widening the gap between the collective Yertle at the top and us turtles down under.

It’s time we start doing some collective burping, a big, loud belch, if you will.

Start with a resounding “No” on Amendment 5.

Sheila Harris is a long-time Barry County resident and a sales executive and investigative reporter for the Cassville Democrat with a particular interest in environmental topics. She may be reached at [email protected]