Missouri has obtained final approval for legislation that will suspend the personal capital gains tax this year. Missouri will become the first state in the United States to eliminate the capital gains tax on income from the sale of stocks, real estate, and crypto assets.
The bill passed in the Senate last month and then by a vote of 102-41 in the House. It was a top goal for House Republicans, and the bill passed the House on Wednesday with only GOP votes and 10 “present” votes from Democrats.
BREAKING: 🇺🇸 The Missouri House has passed a bill to exempt capital gains tax on crypto transactions.#Missouri #Bitcoin #BTC #Tax #Crypto pic.twitter.com/mTTxlo8Bxy
— The Market Journal (@MarketJournalX) May 8, 2025
According to the Missouri Independent, the bill would affect capital gains made in 2025, which would mean a loss of $430 million in state income this fiscal year and $340 million each year after that.
Crypto capital gains would also be exempt from taxation. This could encourage more trading and long-term holding of digital assets in Missouri. However, it would also worsen the state’s income problem worse, especially if crypto keeps increasing in value.
Democrats say that the bill will only help the rich
Democrats raised concerns about the budget. They pointed out that state revenue trends are already over 2% below what was expected.
Some parts of the bill help specific groups, like giving low-income seniors and people with disabilities a bigger “circuit breaker” property tax credit and not taxing diapers and feminine hygiene products.
However, Democrats say the capital gains exemption mostly helps people with high incomes. The IRS says that Missouri had cash gains of $13.3 million in 2022. 54% of that money came from people in Missouri who made $1 million or more a year.
Proponents of both bills that would allow capital gains deductions used the phrase “we don’t have a revenue problem, we have a spending problem” to make their case. They said that Missouri could afford the tax cuts if it spent less each year.
Rep. Darin Chappell, R-Rogersville, said he believes that Missouri has a duty to return people’s money back to their pockets.
“Capital gains promotes economic development which promotes further business creation which promotes job creation which promotes stability,” Chappell said. “We simply cut the weights, which accounts for 1.72% of the overall budget itself.”
Meanwhile, under current law, corporate capital gains would not be tax-free until at least 2030. This is when Missouri’s top individual tax rate drops to 4.5%. That pushed back deadline helped the bill get approval from five of the ten Democrats in the Senate.
Some places that are run by Democrats have been moving in the opposite direction. A bill was passed by lawmakers in Maryland last month that would tax people with incomes over $350,000 on capital gains.
Also, politicians in Washington just passed a law that will add an extra 2.9% tax to capital gains over $1 million. Capital gains and other financial income of over $1 million already have to pay extra taxes in Minnesota.
The altseason is here
The cryptocurrency market is buzzing with excitement as the story of a coming altcoin season spreads among traders and analysts.
#Altseason is coming back 🔥$Total 2 has shifted the market structure from a DOWNTREND, with lower highs (LH) and lower lows (LL), to an UPTREND, forming higher highs (HH) and higher lows (HL) 🚀 pic.twitter.com/YpAa7ykivx
— Trader Tardigrade (@TATrader_Alan) May 8, 2025
As of May 8, 2025, at 10:00 AM UTC, the Total 2 index had increased by 3.2% in 24 hours, according to statistics from top crypto analytics platforms. This move is driven by sentiment rather than technical factors, with trading volumes for key altcoins such as Ethereum, Binance Coin, and Cardano increasing by 15-20% during the same time period.
This activity increase shows increased investor interest and possible capital shift from Bitcoin to altcoins. Meanwhile, on May 7, 2025, at market closure, tech-heavy indices such as the Nasdaq Composite rose 1.5%, indicating optimism in risk assets.
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