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  • The Biggest Bill of the Session Hasn’t Been Filed Yet

    January 5, 2026

    We’ve been breaking down all of the biggest bills to watch in the coming legislative session. From court reform to election integrity, public safety to stopping the China Threat, there will be a lot to track.

    But the single real headline grabber hasn’t even been filed yet.

    That’s because Governor Mike Kehoe’s number one legislative priority for 2026 is nothing less than eliminating the Missouri personal income tax.

    If Missouri gets this passed, it will redefine our economy and put our state on a competitive trajectory unlike anything in recent memory.

    So what will this bill look like?

    What Other States Have Done

    Kentucky, Mississippi, and Oklahoma have passed laws to lock the elimination of their income taxes into state statute tied to specific revenue benchmarks or triggers that must be met before the tax goes away.

    The core idea is this isn’t just a one-off cut. It’s a structured path toward zero:

    • – When state revenues exceed budget needs by a defined margin, the first use of the surplus is to reduce income tax rates instead of expanding spending.
    • – Lawmakers set formulas for future rate reductions that eventually bring the rate all the way to 0 percent.
    • – Oversight or sunset provisions guard against runaway deficits if revenues take an unexpected dip.

    What This Could Mean for Missouri

    A full income tax elimination bill would likely mirror the multi-stage approach used elsewhere:

    1. – Immediate rate reduction triggers based on surplus revenue,
    2. Automatic rate cuts tied to revenue benchmarks,
    3. Safeguards against budget shortfalls, and
    4. – A clear path to zero over a defined period rather than an abrupt repeal.

    Eliminating the income tax is about growth, job creation, and opportunity.

    By keeping more money in the hands of Missourians, we can unlock greater economic potential and make the state more competitive.

    We applaud Governor Kehoe and Conservative legislators for getting us to this stage.

    It’s time for Missouri to finish the job.

    Andy Bakker

    Executive Director
    Liberty Alliance USA

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