Wednesday, January 28, 2026
The Honorable Chairman David Casteel, Honorable Vice-Chairman Travis Wilson, and Members of the Missouri House Committee on Commerce:
Thank you, Chairman and members of the Committee, for letting me speak today. I’m Leah Vukmir, Senior Vice President of State Affairs at National Taxpayers Union. For over 50 years, NTU has stood up for taxpayers at every level of government.
Let me begin with something important and clear: National Taxpayers Union supports the goal of eliminating the income tax. We believe income taxes penalize work, discourage investment, and slow long-term economic growth. Missouri’s interest in moving in that direction is understandable, laudable, and shared by taxpayers across the state. We also support using a transparent, voter-approved process like the one before you to lock in reform and give Missourians a direct voice in the future of their tax system.
Income tax elimination matters because it lets working Missourians keep more of what they earn. Income taxes come straight out of paychecks, before families ever have a chance to save, spend, or plan. When someone works overtime, takes a second job, or finally gets a raise, the state takes a cut first. Eliminating the income tax sends a simple message: Missouri values work and effort, and success won’t be punished.
For middle-class families, that relief isn’t abstract. It means a little more breathing room at the end of the month, a car repair that doesn’t go on a credit card, or extra savings for the future. These households don’t have tax lawyers or fancy deductions. They live on a budget, and income taxes quietly shrink it every pay period. Reducing or eliminating that burden helps families stabilize, save, and build a better life without asking government permission.
But tax relief only works if it actually feels like relief. Tax reform must be evaluated as a whole—not just by individual components—so that families can see and understand how changes affect their overall tax burden. That’s why transparency, process, and accountability matter just as much as the end goal itself.
Getting the details right matters because durable reform builds trust—and trust is what allows tax reform to last.
It’s not enough to just cheer for the finish line. Our job is to help you pick the right road to get there. And the surest road is one that voters can see clearly, evaluate honestly, and ultimately approve themselves.
To help lawmakers think through that road, NTU Foundation has published a concise “Ten Tips for Successful State Tax Reform,” based on lessons from successful and unsuccessful reforms nationwide, which we would encourage the Committee to review as this proposal moves forward.
Missouri’s Baseline: Right Goal, Real Constraints
Missouri isn’t Florida, Texas, or Tennessee. The playbook that works for those states doesn’t fit Missouri’s reality.
But that doesn’t mean Missouri can’t get rid of its income tax. It just means we have to be smart, careful, and upfront about how to fill the gap—especially in the short run.
Why Process Matters as Much as Policy
For most families, tax reform isn’t something you read in a report. You experience it in real life. That’s why voters need clarity—not complexity—and confidence that reforms are designed with their long-term interests in mind.
HJR 174 recognizes this reality by putting the ultimate decision in the hands of Missouri voters. That’s a strength, not a weakness. When voters approve reform, it carries legitimacy, stability, and staying power that legislative action alone can’t provide.
What Missouri Can Learn from Nebraska’s and Kansas’s Struggles
Nebraska and Kansas show us what can go wrong.
In Nebraska, the governor pursued ambitious tax relief goals funded largely through major structural changes that were not well understood by taxpayers. On paper, the math worked. In practice, taxpayers quickly realized what it meant: higher prices on everyday goods and services. The result was political resistance, legislative gridlock, and ultimately no income tax elimination.
Kansas offers a different warning. Past efforts to aggressively cut income taxes without sufficient guardrails or growth sequencing led to budget shortfalls, credit downgrades, and a loss of public confidence in tax reform itself. Even today, those experiences shape legislative caution.
Here’s the lesson: If tax reform moves faster than voters can understand or trust, confidence erodes—and without public confidence, reform rarely lasts.
Iowa’s Lesson: Growth First, Cuts That Last
Iowa offers a more relevant and constructive example for Missouri.
Iowa pursued income tax reform through:
Phased reductions over multiple years
Clear triggers tied to revenue performance
Spending discipline
Predictability for taxpayers and businesses
Iowa understood something basic: tax cuts can spark growth, but that growth doesn’t show up overnight. By phasing in changes, Iowa let new jobs, higher wages, and more investment help pay for future tax cuts—instead of plugging the gap right away with higher sales taxes.
It’s not flashy, but it works. It builds trust and staying power.
A Constructive Path Forward for Missouri
Here’s what we urge Missouri lawmakers to keep in mind as this debate moves forward:
Affirm the goal of income tax elimination, but be honest about the timeline.
Evaluate reform as a complete package, not isolated pieces.
Use phased reductions and revenue or budget triggers to let growth help fund reform.
Maintain spending discipline to preserve fiscal stability.
Protect affordability, especially for lower- and middle-income households.
Educate voters clearly and consistently so they understand how reform works—and why it benefits them over time.
Many of these principles mirror the best practices NTU Foundation has identified in its tax reform guidance.
This isn’t about dragging our feet. It’s about making sure reform sticks. And the best way to make reform stick is to earn the consent and confidence of Missouri voters.
Closing
Missouri can lead the way by learning from what other states got right—and what they got wrong. We can get rid of the income tax, but only if we do it in a way that grows the economy, protects taxpayers, and earns people’s trust for the long haul.
By letting voters decide, by using clear triggers, and by committing to a principled, transparent process, Missouri can build a tax system that is fairer, simpler, and more competitive for decades to come.
National Taxpayers Union stands ready to work with the governor, legislators, and stakeholders to help Missouri get this right.
Thank you for your time and consideration.
Sincerely,
Leah Vukmir
Senior Vice President of State Affairs
National Taxpayers Union