Missouri becomes first state to repeal capital gains tax

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A new Missouri law exempting profits from the sale of investments from income tax takes effect, alongside the removal of sales tax from diapers and feminine hygiene products.

This makes Missouri the first state to exempt profits from assets like stocks and real estate from income tax.

While estimated to reduce revenue by $111 million annually, the impact could be much larger, potentially exceeding $600 million.

The state anticipates further revenue reduction due to federal tax changes and increased costs for programs like Medicaid.

A new Missouri income tax cut exempting profits from the sale of investments officially takes effect Thursday, along with smaller tax changes that will remove sales tax from diapers and feminine hygiene products.

All state laws passed