1. United States
2. Mo.
3. Letter

I stand in strong opposition to HB508 (Hruza), HB594 (Perkins), and SB46 (Trent), which propose a 100% income tax deduction for all capital gains income in Missouri. While these bills may appear to incentivize investment and economic growth, they are fundamentally flawed and would have severe consequences for our state’s fiscal health, equity, and ability to provide essential public services. These bills disproportionately benefit the wealthiest Missourians. Capital gains income is overwhelmingly concentrated among the top earners, who already enjoy significant tax advantages. For example, according to the Institute on Taxation and Economic Policy, the top 1% of Missouri taxpayers receive nearly 80% of all capital gains income. By eliminating taxes on capital gains, these bills would exacerbate income inequality and shift the tax burden onto working families who rely on wages and salaries. This is not just unfair—it is a direct attack on the principle of a progressive tax system, where those with greater means contribute their fair share. The fiscal impact of these bills would be catastrophic. Capital gains taxes are a critical source of revenue for our state, funding education, infrastructure, healthcare, and other vital services. For instance, in 2022, capital gains taxes contributed approximately $500 million to Missouri’s budget, supporting public schools, road maintenance, and Medicaid. By eliminating this revenue stream, these bills would create a massive budget shortfall, forcing cuts to programs that Missourians depend on. At a time when our state should be investing in its future, these bills would recklessly undermine our ability to meet the needs of our communities. Proponents may argue that these bills will stimulate economic growth, but there is little evidence to support this claim. Studies from states like Kansas, which implemented similar tax cuts in 2012, show that such policies fail to generate meaningful job creation or economic expansion. Instead, they deepen inequality and deprive states of the resources needed to build a strong, inclusive economy. Missouri cannot afford to gamble its future on a trickle-down experiment that has repeatedly failed elsewhere. These bills sends the wrong message about our values. They tell hardworking Missourians that their contributions are less important than the profits of investors. They tell our children that their schools and futures are less important than tax breaks for the wealthy. And they tell our communities that their well-being is less important than the interests of a privileged few. For these reasons, I urge you to reject these and any similar bills. Let us focus on policies that promote fairness, strengthen our economy, and ensure that every Missourian has the opportunity to thrive.