1. United States
2. Mo.
3. Letter

I am in strong opposition to SB1575 (Crawford) and HB2945 (Hardwick), which seek to expand capital gains tax exemptions. While Missourians face a persistent crisis in affordable housing, healthcare, and public education, these bills prioritize tax giveaways that overwhelmingly benefit the wealthiest individuals and corporations. The centerpiece of these bills is the full exemption of capital gains from state income tax for individuals and entities. This is a massive tax break for the wealthy. Capital gains income is highly concentrated among the top earners—those who profit from investments, real estate speculation, and stock market trading. Working families, who rely on wages to pay for groceries and rent, see little to no benefit from such a provision. In essence, this legislation forces the state to forego critical revenue while asking nothing more from those who have already gained the most. When we cut taxes for the rich, we must cut services for the many. Missouri cannot afford to hollow out its revenue base at a time when our schools are underfunded, our infrastructure is aging, and social safety nets are stretched thin. Shifting the tax burden further away from unearned investment income and onto wage earners is a regressive step that deepens economic inequality. Additionally, the bills expand the definition of capital gains to include portions of ordinary income that are currently treated as standard business income under federal tax codes. This creates a dangerous loophole, allowing high-income professionals to reclassify their earnings to avoid paying their fair share. The bills also carve out specific exemptions for gold and silver specie transactions, a niche benefit that serves ideological interests rather than broad economic growth. While the bills include a seemingly well-intentioned program to assist beginning farmers, that program is already established under current law. The broader capital gains giveaway is not a necessary tool for agriculture; it is a gift to the investment class. We can support family farms and new agricultural producers without dismantling the state’s ability to fund essential public goods. I urge you to reject this legislation. Missouri needs a tax code that invests in working families, not one that diverts scarce public resources to those who need them least. Lawmakers should focus on providing relief through direct means, such as expanding the Earned Income Tax Credit or addressing property tax burdens, rather than pursuing an untargeted, costly, and regressive capital gains exemption.