JEFFERSON CITY — About 20 members of Americans for Prosperity Missouri and MO Tax Relief Now gathered inside the Missouri State Capitol rotunda on Tuesday to listen to remarks from Missouri politicians and campaign for the removal of the state’s individual income tax.

Gov. Mike Kehoe has made the elimination of individual income tax a top priority for the legislative session, calling for its removal in the next five years.

The groups believe this proposal will make Missouri more affordable and incentivize economic growth. But as the elimination of individual income tax becomes a top focus in the legislative session, some are opposed, fearing a lack of revenue and an increase in costs for Missouri residents.

House Joint Resolution 174, carried by Missouri House Speaker Jon Patterson, R-Lee’s Summit, would allow voters to decide if income taxes should be gradually reduced to zero by January 2031. If approved, the amendment would allow the state to expand sales and use taxes to replace the revenue the individual income tax generated.

Dennis Ganahl, founder of MO Tax Relief Now, said the average Missourian paid $1,500 in state income taxes, which he hopes can be spent on necessities under Patterson’s proposal.

“We’re going to hand these people $1,500, and they’ll be able to spend on water heaters, shoes for the kids, put gas in their car and buy more food,” Ganahl said. “If we charge people by their consumption versus charging them by their income, they’re going to have more control over what they spend and how they spend.”

Ganahl also said this proposed tax elimination will help address privacy concerns he believes individual income tax brings.

“Right now, the state is digging into your records and my records,” Ganahl said. “They know what we’re making, how many dependents we have, they know all of that. It’s time to stop letting them invade our privacy.”

Ganahl said a sales tax structure will address issues of affordability, which he believes are felt by the middle class.

“The wealthy can afford to live, and the poor get support already — they’re getting housing, medical care, food stamps,” Ganahl said. “It’s the middle class who can’t afford to live anymore.”

Critics of Kehoe’s tax proposal argue that a sales tax is regressive, as low-income residents are likely to pay a larger percentage of their income when compared to wealthier individuals. However, Ganahl said this tax structure will force the wealthy to pay more than they currently pay in income taxes, which are currently set at 4.7% for top earners.

Debbie Fehl, a resident of St. Louis, also believes Missouri residents are overtaxed and any cuts to individual income tax will increase Missourians’ disposable income.

“This would give us more freedom to be able to go on vacation, buy more things for our home, maybe even get a bigger home,” Fehl said.

Sabrina Merritt, an attorney for Travelers Insurance from Kirkwood, said that once Missouri residents have more money to spend, it will fuel the economy and stimulate growth. Merritt noted that eliminating income tax will also incentivize businesses and people to come to Missouri.

“We’re going to be able to draw more people in,” Merritt said. “That’s going to encourage more companies to come here and let other people outside find out how great Missouri is.”

Not all Missourians agree that eliminating income tax is a wise decision. Progress MO, a group dedicated to platforming progressive ideas, hosted a virtual news conference on Jan. 27. Speakers such as Aisha O’Malley, a single mother living in Lee’s Summit, said this tax reform is more about giving the wealthy a tax cut than improving affordability in Missouri.

“We need our state to take care of us instead of just kowtowing to the billionaires that are patting their pockets,” O’Malley said. “Patterson has made it very clear he will not listen to Missourians unless they are a billionaire who is financing him.”

O’Malley said a sales tax structure will likely increase the price of goods that Missourians rely on. She added that she struggles to afford groceries, utilities and car repairs, a problem she believes may get worse under Patterson’s proposal.

“I’m glad my son’s wanting to grow his hair out, because he’s not getting a haircut anytime soon,” O’Malley said. “When, not if, the Republican tax plan fails, we can have calls to action and calls for accountability because this is going to impact so many Missourians.”

Jennifer Layton, a resident of Columbia, expressed similar concerns during the virtual meeting. Layton said she is concerned this resolution will raise the price of goods and services, adding to her existing problems with affordability.

“I’m a disabled Missourian and live on a very small fixed income,” Layton said. “The idea that costs could go up from here is absolutely terrifying to me.”

Layton said she already struggles to purchase food and relies on food stamps and other social services to get by.

“The cost of living in Columbia is not cheap, but if I were to move out of Columbia or Boone County, I would no longer be in a location with the level of services for the disabled, with a great and wonderful food pantry,” Layton added.