Missouri Is About to Nickel-and-Dime Working Families

The penny is going away, but most Americans will get used to it. The U.S. Treasury stopped making pennies after it started costing 3.69 cents to make just one. The government says it ended production of new pennies in late 2025. You can still use old pennies, but now cash transactions round to the nearest nickel. This change is a reminder that even small price differences can add up quickly.

That is why everyone in Missouri should pay attention to the latest tax debate.

A 2015 Berkeley iSchool project examined how people react when extra fees and add-ons obscure the true cost of something. Researchers called this “price partitioning,” and found it can push customers away, hurt repeat business, and break trust because the advertised price does not match what people actually pay. The issue is not just the money. It is the feeling of being taken advantage of, one small charge after another.

That is what Missouri Republicans are doing to working families right now.

They are not just “modernizing” the tax code, as they say. House Joint Resolutions 173 and 174 would let voters decide on a constitutional amendment that could lower Missouri’s income tax rate to zero. At the same time, it would let lawmakers expand sales and use taxes to more goods and services. The fiscal note says Missouri could lose about $1.046 billion in revenue by 2029, and up to $8.51 billion once the changes are fully in place.

What a tax burden shift!

We already know who feels the pressure when this majority makes cuts. Missouri House Republicans removed more than $100 million from their 2025 budget for child care subsidies. They stopped an effort to add $50 million more to public schools. In the past, they voted to remove all $4.5 million in state aid for public libraries. Missouri’s transit funding was also cut by 42% after budget vetoes in 2025. These programs help parents work, students learn, seniors get around, and communities stay strong.

So when leaders say they want to “return money to the people,” Missourians should ask: which people are they talking about?

Wealthy taxpayers gain the most when income taxes go away. But a skilled worker, a single parent, or a family already counting every dollar will notice higher costs elsewhere; at the grocery store, barber shop, auto repair shop, and on utility bills. The official House bill summary includes testimony warning that this plan could expand sales taxes to more everyday services. Missouri Budget Project said that 60% to 80% of Missourians could end up paying more in taxes under this plan.

That is what it means to nickel-and-dime people in Missouri.

First, they cut child care funding and expect families to manage on their own. Then they reduce money for schools and libraries and call it discipline. They cut transit and call it efficiency. Finally, they phase out income taxes in a way that makes daily life more expensive and call it modernization. It is the same pattern every time: hide the real cost, promise savings, and give people the bill in small pieces, hoping no one notices. Berkeley’s research focused on business, but the lesson fits here too: people do not like being promised one price and charged another.

Missouri does need a real discussion about taxes. True modernization should bring fairness, simplicity, and long-term stability. It should not create a huge gap in the state’s budget or raise taxes on everyday goods and services. It should not favor the wealthy over working people. And it should not come from the same leaders who keep saying there is no money for child care, schools, libraries, transit, tutoring, and workforce support.

The penny may be going away, but nickel-and-dime politics are still strong in Jefferson City. Missouri families should not be misled by talk of modernization or tax relief. If HJR 173 and 174 pass, the truth is clear: the wealthy will get the big benefits, and working families will be left with the small change.