Missouri to Become First State to Waive Taxes on Capital Gains

Missouri will be the only state in the country to exclude capital gains from personal and corporate income taxes, under legislation Gov. Mike Kehoe (R) will approve later this summer.

Kehoe plans to sign HB 594, which he described as a “pro-growth” tax reform bill in a press statement Monday. He cautioned, however, that the measure would reduce state revenue by roughly $400 million annually—a loss that “must be accounted for in current and future budget decisions.”

A separate feature of HB 594 exempts feminine hygiene products, diapers and incontinence products from the state’s sales and use tax. Kehoe ...