In a move to bolster the state's revenue stream, Missouri has announced a new taxation reform that will impact residents and businesses across the state. The reform, which was introduced on February 17, 2026, aims to modernize the state's tax system and generate additional funds for crucial public services.One of the key changes in the new taxation reform is the introduction of a higher income tax rate for high-earning individuals and companies. The top income tax bracket will see an increase from 5.4% to 6.5%, affecting individuals earning over $200,000 and businesses with annual revenues exceeding $1 million. This change is expected to bring in an estimated $100 million in additional revenue annually.In addition to the income tax adjustments, the state has also implemented a new sales tax on certain luxury goods and services. Items such as high-end vehicles, designer clothing, and upscale dining experiences will now be subject to a 2% sales tax, with the revenue generated from these taxes going towards funding education and infrastructure projects.Furthermore, Missouri is looking to streamline its tax code by eliminating certain tax breaks and loopholes that have been exploited by large corporations. By closing these loopholes, the state hopes to level the playing field for all businesses and ensure that everyone pays their fair share of taxes.Governor Sarah Johnson, who championed the taxation reform, stated that these changes are necessary to ensure the long-term financial stability of the state. "Missouri has been operating on an outdated tax system for far too long. It's time we modernize our approach to taxation and ensure that everyone contributes their fair share," she said in a press conference announcing the reform.While the new taxation reform has faced some criticism from opponents who argue that it will burden high-earning individuals and businesses, supporters believe that it is a crucial step towards securing the state's financial future. The reforms are set to go into effect on January 1, 2027, giving taxpayers ample time to adjust to the changes.