Missouri bill ending capital gains tax heads to governor for signature

Missouri House Bill 594, a bill that would eliminate capital gains tax in the US state, has passed a vote in the state House of Representatives and now heads to Missouri Governor Mike Kehoe’s desk for signature. According to attorney Aaron Brogan, the bill stipulates a 100% income tax deduction for any capital gains income because the Missouri tax code does not explicitly distinguish between capital gains and income tax. Brogan told Cointelegraph that the specific mechanism to exempt capital gains taxes outlined in HB 594 is unique and compared it to a similar income tax deduction in the federal tax code. The attorney explained: “The most natural comparison is the state and local tax (SALT) deduction that the federal government offers — where the Internal Revenue Code (IRC) permits individuals to deduct a certain amount of tax paid in state and local taxes. This is the inverse, which I have never seen before.” The bill’s timing is significant in that it follows proposals from US President Donald Trump to overhaul the country’s income tax system through comprehensive reform. Related: US lawmaker targets crypto investors using Puerto Rico as a tax haven Trump proposes eliminating federal income tax in the United States Trump has proposed offsetting federal income taxes or eliminating the income tax and replacing the federal tax revenue with money raised through import tariffs. “When Tariffs cut in, many people’s income taxes will be substantially reduced, maybe even completely eliminated. The focus will be on people making less than $200,000 a year,” the president wrote in an April 27 Truth Social post. Trump added the plan will create more jobs in the United States as factories return to avoid import duties on their finished products. Despite this, the market reaction to the tariffs has been overwhelmingly negative, with the stock market recording trillions of dollars in losses in response to tariff headlines and crypto markets shedding hundreds of billions in value. Additionally, bond yields spiked following the tariff announcements — a sign that investors were rejecting US bonds, which are traditionally seen as a flight to safety. Magazine: Financial nihilism in crypto is over — It’s time to dream big again Source: https://cointelegraph.com/news/missouri-could-become-first-state-eliminate-capital-gains?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound