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  • Missouri Conservatives Are United on Tax Reform. Now It’s Time to Act.

    January 7, 2026

    Momentum is building in Jefferson City.

    As lawmakers prepare for the session, Governor Kehoe’s State of the State address will set the tone for whether income tax elimination moves forward this year.

    This week, a broad coalition of conservative and taxpayer-focused organizations, including Liberty Alliance, sent a clear message to Missouri lawmakers: modernizing our tax code is no longer optional. It is necessary if Missouri wants to stay competitive, protect working families, and lead in the next era of economic growth.

    The letter, led by the National Taxpayers Union, urges the General Assembly to support Governor Mike Kehoe’s proposal to responsibly eliminate Missouri’s individual income tax while modernizing our outdated sales tax system.

    Missouri’s Tax Code Is Outdated, and Everyone Knows It

    Missouri’s individual income tax system dates back to 1931.

    That alone should set off alarm bells.

    Under the current structure, Missourians earning just over $9,000 a year are already pushed into the top tax bracket. That is not a tax system designed for growth, families, or upward mobility. It is a relic of the Great Depression that has never been meaningfully updated.

    The sales tax side is no better. Missouri now has:

    • 216 separate sales tax exemptions
    • – More than 2,500 taxing jurisdictions
    • – A system so complex that only lobbyists and special interests truly benefit

    This isn’t conservative governance. It’s bureaucratic inertia.

    Other States Are Moving Forward. Missouri Should Too.

    The truth is simple: states across the country are cutting income taxes and winning because of it.

    Nine states have no individual income tax at all. More than two dozen others have lowered rates, flattened brackets, and adopted responsible phase-out plans tied to revenue growth.

    These states are attracting jobs, families, and investment, while states that cling to outdated tax systems fall behind.

    Missouri can either compete or stagnate. Standing still is not an option.

    Conservatives Are Aligned.

    While Liberals are fighting amongst themselves, Conservatives are aligned on goals: responsible tax relief, structural reform, and fiscal guardrails that protect Missouri taxpayers.

    The letter calls on lawmakers to:

    • Support a responsible phase-out of the individual income tax
    • Simplify and modernize the sales tax base
    • Use revenue triggers and fiscal safeguards to ensure long-term stability

    This is not reckless. It is disciplined, pro-growth Conservatism with a track record of success in other states.

    Missouri Has a Choice

    Lawmakers can keep defending a tax system designed for a bygone era, or they can lead.

    They can protect a system that punishes work and growth, or they can deliver meaningful relief to Missouri families and small businesses.

    We’re proud to stand with conservative partners calling for reform, and we will continue pushing to ensure Missouri lawmakers seize this opportunity.

    Missouri should lead. And the time to act is now.

    Andy Bakker

    Executive Director
    Liberty Alliance USA

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