Missouri House Bill 594 has successfully passed the state House of Representatives. It is now awaiting Governor Mike Kehoe’s signature.
If signed into law, the state will offer a unique tax benefit for crypto investors. This will make Missouri an even more attractive location for capital investment.
A Bold Step Toward Tax Relief
Missouri’s new bill represents a major shift in the state’s tax policy. The legislation stipulates a 100% income tax deduction for capital gains income, effectively exempting it from state taxation. This is a significant change because, in Missouri, the state tax code does not differentiate between capital gains and other forms of income. Attorney Aaron Brogan, who helped explain the bill’s details to Cointelegraph, emphasized that this approach is unlike any other in the U.S. tax system.
“The most natural comparison is the federal state and local tax (SALT) deduction,” said Brogan, referring to a familiar federal tax break. “But this is the inverse, where the state is actively exempting capital gains from taxation, not just offering a deduction.” This could potentially set a precedent for other states considering similar reforms.
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The timing of this bill is crucial. As the U.S. continues to debate tax reforms. This includes proposals from former President Donald Trump to overhaul the national tax system. So, Missouri’s move stands out. While discussions at the federal level are ongoing, Missouri’s decision offers an immediate, concrete change for investors. By eliminating capital gains tax, Missouri is positioning itself as a key player in attracting both local and out-of-state investments. Especially in areas like real estate, tech startups, and cryptocurrency.
More About Taxes on Crypto
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Disclaimer
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