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.
Missouri House Bill 594 proposes exempting capital gains from income taxes. Source: Missouri House of Representatives
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