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Bill

HB 2975

Modifies provisions relating to the calculation of income tax, establishing new progressive personal income brackets and repealing income tax subtractions for certain capital gains, with a referendum clause

2026 Regular Session Introduced by Mark Boyko and 4 co-sponsors

Missouri bill restructures income tax with progressive brackets and removes capital gains subtractions, subject to voter referendum approval.

Referred: Special Committee on Urban Issues(H)
#revenue #departmentof #taxationandrevenue-general #taxationandrevenue-income
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Bill Summary · HB 2975

Legislative bill overview

HB 2975 restructures Missouri's personal income tax system by implementing new progressive tax brackets and eliminating certain capital gains tax subtractions. The bill includes a referendum clause, meaning voters would need to approve the changes before they take effect.

Why is this important

This legislation directly affects how Missourians pay state income taxes and could significantly impact both individual tax liability and state revenue. The shift toward progressive brackets and removal of capital gains subtractions would alter the tax burden distribution across income levels, potentially affecting retirement savings, investment decisions, and state funding for services.

Potential points of contention

  • Capital gains treatment: Eliminating subtractions for capital gains could discourage investment and affect retirees living on investment income, while supporters argue it creates a fairer tax system
  • Progressive bracket design: The specific income thresholds and rates will determine whether lower, middle, or higher earners bear the largest burden—details not provided in this summary
  • Voter approval requirement: The referendum clause means implementation depends on public approval, creating uncertainty for budget planning and potentially allowing significant campaign spending on both sides

Compiled from official sources — confirm details with the bill’s official record.

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