Missouri is on the brink of a groundbreaking tax reform that could eliminate capital gains tax entirely, a move with significant implications for crypto and stock traders.
The Bill That Could Change Everything
Missouri House Bill 594 has passed its final legislative vote and now awaits Governor Mike Kehoe’s signature. If signed, it would introduce a 100% income tax deduction on all capital gains, including profits from digital assets like Bitcoin and XRP.
At the time of writing, Bitcoin is trading above $104,000 and XRP holds at $2.38, with both seeing gains as investors react to the news.
A National Trend?
This proposal comes shortly after former President Trump suggested a federal tax reform plan that would replace income tax with revenue from import tariffs. Trump mentioned, “When tariffs cut in, many people’s income taxes will be substantially reduced, maybe even completely eliminated.”
What This Means for Investors
Currently, Missouri taxes capital gains as ordinary income, with rates ranging from 0% to 4.7%. For example, someone with $350,000 in capital gains would face a state tax of approximately $16,273.55. The new bill could erase this entirely, making Missouri a tax haven for investors.
All eyes are now on Governor Kehoe, whose decision could position Missouri as the most tax-advantaged state in the U.S. for crypto and stock investors.
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