Missouri House Bill 594, aiming to abolish capital gains tax in the state, has been approved by the state House of Representatives and is now awaiting Missouri Governor Mike Kehoe’s signature. The bill proposes a 100% income tax deduction for all capital gains income due to the lack of explicit differentiation between capital gains and income tax in the Missouri tax code, as highlighted by attorney Aaron Brogan. Brogan mentioned that the mechanism outlined in HB 594 to exempt capital gains taxes is unprecedented and comparable to the federal tax code’s state and local tax (SALT) deduction. The bill’s timing is crucial as it aligns with President Donald Trump’s proposals to revamp the national income tax system through comprehensive reform. Trump has suggested offsetting federal income taxes by eliminating them and funding federal tax revenue through import tariffs. He believes this strategy will lead to substantial reductions or even complete elimination of income taxes for individuals earning less than $200,000 annually, ultimately creating more job opportunities as domestic factories return to avoid import duties. Despite the positive outlook, the market response to the proposed tariffs has been adverse, with trillions of dollars lost in stock markets and significant declines in the crypto market. Additionally, bond yields surged post-tariff announcements, indicating investor aversion to U.S. bonds traditionally considered a safe haven. This move has sparked a renewed debate on financial strategies and the impact on various markets.