"Missouri, USA, Moves to Exempt Capital Gains from State Income Tax for Virtual Assets... First Case in the US"

Minseung Kang

Summary

Missouri announced that it has given final approval to a bill exempting state income tax on capital gains from the sale of stocks and virtual assets.
If the bill is implemented, Missouri is expected to become the first state in the US to exempt capital gains tax.
Supporters reported that the tax exemption could contribute to investment promotion and economic revitalization.

It has been revealed that Missouri, USA, has passed a bill exempting capital gains from the sale of assets such as stocks and virtual assets (cryptocurrency) from state income tax. If the bill is implemented, Missouri is expected to become the first state in the US to fully exempt capital gains tax.

According to Fortune, an American economic magazine, the Missouri House of Representatives gave final approval to a bill on the 7th (local time) that excludes capital gains from state taxation. The bill will apply to individual investors starting this year and may be expanded to corporate investors if tax revenue continues to increase.

Currently, 32 states in the US and Washington D.C. tax capital gains as ordinary income. On the other hand, Democratic-led regions such as Maryland, Washington, and Minnesota are instead increasing capital gains tax rates.

The media reported, "Supporters argue that the abolition of capital gains tax could lead to investment promotion and economic revitalization," but also noted that "there are concerns that excessive benefits could be returned to the wealthy."