Missouri year in review: capital gains eliminated, Medicaid increased

(The Center Square) – In 2025, Missouri lawmakers passed legislation to eliminate its capital gains tax, phase out the state income tax and expand Medicaid legislation.

The Club for Growth Foundation reviewed more than 550 floor votes in the Missouri legislature, scoring 15 in the House and 13 in the Senate. The foundation focused on policies that positively or negatively contributed to tax reform and deregulation throughout the state.

“The Club for Growth Foundation’s State Scorecard series aims to provide transparency for citizens, both in Missouri and across the country, into how elected officials approach the legislation that impacts their everyday lives,” said David McIntosh, president of the Club for Growth Foundation.

Missouri became the first state in the nation to pass legislation eliminating the capital gains tax for federal income tax purposes beginning Jan. 1, 2025. The Club for Growth estimated the capital gains exemption would reduce individuals’ tax burden by $485 million through fiscal year 2030.

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