Upcoming U.S. Legislation Targets 0% Tax on Profits From Bitcoin, XRP, and Stocks

A bold new tax proposal is gaining momentum in the U.S., threatening to upend how investors are taxed on everything from crypto to real estate.

A new tax bill that could drastically alter how investors are taxed on their capital gains has cleared the Missouri legislature and now awaits the governor's signature.

The legislation, known as House Bill 594, would provide a full income tax deduction for gains realized by state residents. This includes income from cryptocurrencies like Bitcoin and XRP, stocks, and real estate.

The bill passed the House on Wednesday, with a vote of 97-0, and the Senate approved it on Thursday, in a vote of 28-6. It now heads to Governor Mike Kehoe, who has until July 1 to decide whether to sign or veto the measure.

The timing of the bill aligns with the recent surge in Bitcoin price, which has now passed $104,000. XRP price is also trending upward, and many investors are turning their attention to Missouri as a potential tax haven for their digital wealth.

This proposal also comes amid broader discussions on national tax reform. Former President Donald Trump recently shared his thoughts on revamping the U.S. tax system.

In a recent interview with Real America’s Voice, Trump suggested replacing income taxes with tariffs. He believes that the current tax system is "unfairly burden" working families and seniors.

“We should be able to tax people coming into the country, not the people inside the country. So they’ll have no income tax, they’ll have no payroll tax, they’ll have no property tax, they’ll have no sales tax. But they’ll pay a tariff tax,” Trump explained.

The new bill in Missouri could have a significant impact on investors in the state.

Currently, capital gains are taxed as regular income in Missouri, with rates ranging from 1.5% to 4.7%. This means that a six-figure capital gain could result in tens of thousands of dollars in state tax liability.

However, HB 594 would eliminate those taxes, creating a more favorable environment for high-volume traders, large asset holders, and those planning to sell property and quickly reinvest the proceeds.

Governor Kehoe has not yet indicated whether he will sign the bill. If he does, Missouri could become the first state in the U.S. to eliminate capital gains taxes at the state level.

This move could also influence other states to consider similar tax changes in the coming year.