Missouri Senate sets aside two House bills proposing capital-gains deduction

Missouri senators set aside House Bill 594 and House Bill 508, measures that a bill handler said would authorize an income-tax deduction for capital gains, during floor consideration in the tenth week of the regular session of the 100 and third General Assembly.

Senator Curtis Trent of Battlefield, the bill handler, said the measure would authorize an income-tax deduction for capital gains. Senate Minority Floor Leader Doug Beck of Afton disputed that description of a separate state capital-gains tax, arguing Missouri already taxes capital gains under the state income tax and criticizing the bills as a giveaway. "They're gonna basically give a handout to billionaires and corporations to pay their federal capital gains tax. That's what this bill does," Beck said.

The bills were "set aside for future consideration," according to floor reporting, and no final vote on either bill was recorded during the floor remarks captured in the transcript. Senators paused consideration as the legislature approaches its mid-session recess; the reporting noted lawmakers are in the tenth week of the first regular session and will recess next week, leaving eight weeks remaining in the session when they return.

The discussion centered on whether the proposed measures would change how capital gains are treated under Missouri law. Trent framed the bills as authorizing a deduction for capital gains income. Beck countered that Missouri does not have a separate capital-gains tax and that the proposals would primarily benefit wealthy taxpayers and corporations, a concern he voiced on the floor.

Reporting from the State Capitol, Dean Morgan.