Missouri House Passes Bill to Eliminate Capital Gains Taxes Amid Budget Tensions
JEFFERSON CITY — The Missouri House of Representatives has approved House Bill 594, which aims to eliminate state taxes on capital gains, pushing forward Governor Mike Kehoe’s long-term strategy to phase out state income taxes incrementally. After passing the Senate, the bill is now headed to Kehoe’s desk.
Supporters, primarily Republicans, argue that the bill provides tax relief to many Missourians, emphasizing that working families also benefit from selling homes at a profit. "Working people have homes too," asserted Rep. Dean Van Schoiack, R-Savannah. Critics, however, particularly from the Democratic party, contend the legislation disproportionately favors the wealthy. Rep. Yolanda Young, D-Kansas City, lamented, "This bill will only, all the more, rather, benefit the wealthy."
Included in the same bill are provisions to eliminate state sales taxes on essential items such as diapers and feminine hygiene products. Some Democrats expressed discomfort over these combined provisions, comparing it to being forced to make an impossible choice.
Simultaneously, tensions rise over the state budget, with the House reducing public school funding by nearly $300 million while the Senate aims to restore it. The impasse was exacerbated when House Budget Committee Chair Rep. Dirk Deaton, R-Seneca, postponed crucial budget negotiations for 13 hours. As lawmakers face a looming deadline to finalize a balanced budget, Sen. Lincoln Hough, R-Springfield, called for collaboration to resolve budget differences, particularly regarding education funding.
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