Eliminating the income tax, which represents 65% of state revenue, is a top priority for Gov. Mike Kehoe and legislative Republicans. Democrats say the tax burden shouldn’t shift to lower-income Missourians
By:Jason Hancock and Steph Quinn
Missouri Independent
Missouri lawmakers returned to work Wednesday to kick off the 2026 legislative session, with Republicans determined to eliminate the state income tax and Democrats vowing to oppose any effort to replace it with increased taxes on sales or services.
Missing from the first day were the partisan fireworks that defined the end of last year’s session and a special session in September. Instead, both the House and Senate functioned normally on Wednesday, quickly running through motions of a first-day and adjourning with little fanfare.
But the partisan schism simmered under the surface.
Republican Gov. Mike Kehoe is pushing for elimination of the state’s income tax and is expecting to lay out his plan next week when he speaks to a joint session of the legislature for his annual State of the State address.
Democrats — still smarting from last year’s GOP moves to cut off debate to pass bills repealing expanded paid sick leave, gerrymander the state congressional map, change the initiative petition process and reimpose an abortion ban — said they are withholding judgment until they see the details of Kehoe’s plan.
But they note the income tax represents 65% of last year’s $13.4 billion in state revenue.
Democrats will not support raising taxes that disproportionately impact lower-income Missourians to pay to eliminate the income tax, said Senate Minority Leader Doug Beck, an Affton Democrat.
“People are already having a really hard time making ends meet in this state,” Beck said. “People are living paycheck to paycheck. So if anyone wants to raise taxes on those folks, that is unacceptable to us. As Democrats, we say there should be no new taxes.”
House Minority Leader Ashley Aune, a Kansas City Democrat, said that while the possible elimination of the income tax is “being sold as…getting rid of your taxes,” most Missourians will see little benefit.
“What they’re not telling you is how much more you’ll have to spend every time you swipe your card,” Aune said, adding: “The next time you have an expensive car repair or costly emergency visit from a plumber to fix a broken pipe, you’ll also be paying double digit sales taxes on that bill. Struggling to pay your rent? The struggle will get even harder when Republicans add a sales tax onto that.”
Democrats will lay out their own income tax proposal next week, Aune said, that will offer “targeted tax relief for those who need it most.”
State Rep. Mark Boyko, the Kirkwood Democrat who will sponsor the measure, said that while Missourians earning over $250,000 could end up paying more under the Democrats’ tax plan, it would generate much-needed revenue.
The proposal, Boyko said, “will actually lower your costs.”
Senate President Cindy O’Laughlin, a Shelbina Republican, urged her colleagues in an opening day speech to work together to “find solutions that move Missouri forward.”
While tax cuts weren’t directly mentioned in her speech, O’Laughlin left little doubt where she stood.
“Taxes, regulations, red tape and bureaucracy do not make Missouri better,” she said. “In every case, they take from Missouri families, they also take from Missouri small businesses. And our job is to reduce that impact. We must make sure what we take is as limited as possible.”
Missouri families want results, O’Laughlin said.
“They want better roads, better schools,” she said. “They want more private home ownership. They want safe streets and neighborhoods. They want better jobs and stronger job skills. They want thriving communities, and they want less dependence on the government at all levels.”
Hovering over the income tax debate is a state budget picture looking gloomier than it has in years.
General revenue is projected to be $400 million below estimates made a year ago. Part of the reason is that a capital gains tax cut passed last year that was estimated to reduce revenue by $111 million annually is now believed to cost as much as $500 million the first year and $360 million a year moving forward.
Beck said that while Democrats decided against using procedural maneuvers to gum up the Senate on the first day, the chamber will move much more slowly this year — not only in response to last year’s GOP moves quash Democratic filibusters, but also to avoid mistakes like the cost of the capital gains tax cut.
“When you shut off debate or refuse to engage with the other side to just rush things through, mistakes happen,” he said. “We were screaming from the hilltop that the capital gains cuts were going to cost way more. But we went too fast, and senators weren’t allowed to do their jobs.”