Missouri’s Tax Break for the Rich (and Maybe You Too?) The first U.S. state to exempt capital gains from state income taxes.

Stocks, crypto, and real estate profits to be income tax-free—here’s what that actually means.

Missouri just tossed a grenade into the tax code. Lawmakers passed a bill that, if signed by Governor Mike Kehoe, would make Missouri the first U.S. state to exempt capital gains from state income taxes. That includes profits from selling stocks, real estate, and crypto. In short: if your Dogecoin moons or your Tesla shares double, Missouri won’t take a cut—at least not at the state level.

Let’s break this down:

What’s the move?

This proposed law would completely remove capital gains from your state tax return. Missouri currently has a top income tax rate of 4.8%, so this could mean big savings for investors.

Why now?

Supporters say the move will boost economic growth, encourage investment, and help small business owners or farmers who sell off long-term assets. Critics say it mostly helps the rich—since, well, 80% of capital gains go to the top 5% of earners. That awkward silence you just heard? That was the middle class blinking.

Who’s next?

Other red states—especially those already flirting with zero income taxes, like Tennessee or South Dakota—could take a cue. Meanwhile, blue states like California and New York are more likely to raise taxes on capital gains than cut them.

Quick Pros & Cons

Pros:

• Investment boost — Encourages people to sell and reinvest.

• Could attract businesses and retirees — Florida, but with more corn.

• Simplifies your taxes — Less headache, more gains.

Cons:

• Big revenue loss — An estimated $500M+ in lost state funding.

• Inequitable — Tax break heavily favors the wealthy.

• Risk to public services — Less money for schools, roads, and Band-Aids.

Final thought:

If you’re holding GameStop stock and a plot of Ethereum dreams, Missouri’s about to be your new favorite state. But if you’re a teacher wondering where your classroom funding’s going—well, maybe don’t check the blockchain.