Joe Biden goes to war against Bitcoin: surcharge and penalties for cryptos

Taxes, always more taxes – For to choke in the bud the young sector of Bitcoin (BTC) and cryptocurrencies, it’s not just incredibly stringent compliance rules towards crypto players. There is also the excessive taxation of their crypto-enthusiastic customers. The American President Joe Biden intend to give (again) one tax turnaround additional against owners of bitcoins and other crypto-assets.


Reducing Crypto Adoption While Raising More Taxes? Joe Biden has a solution

The administration of Joe Biden will publish his budget plan for the year 2024. And to achieve its goal – to reduce the US deficit by nearly $3 trillion in the next ten – guess who are in the rank of targets ? Oh yes, the owners of crypto-assets !

After nearly a decade oftotal hostility after the launch of Bitcoingovernments have finally realized the important financial windfall generated by this booming innovative sector. And the taxes and duties have blossomed at full speed on digital assets in recent years.

And like the reports the Wall Street Journal, it’s obviously not over, at least to the USA. A proposal to increase levies on capital gainsand a repression of “wash sales” would be on the (hard to swallow) menu for crypto enthusiasts.

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Crypto investors: cash cows for the US tax authorities?

These changes to the tax treatment of cryptocurrency transactions would make it possible to milk, sorry, to raise $24 billion in taxes additional, according to the Wall Street Journal publication.

THE maximum tax rate individuals would pass from 37% to 39.6%in a desire to “tax capital gains more heavily”, especially here for the wealthiest taxpayers. This increase, however, is not only for cryptos, but all capital gains.

Joe Biden adopts more than aggressive taxation against cryptos.
Joe Biden delivers the deathblow to cryptos through very aggressive taxation

The most direct and specific attack against digital assets is as follows. Currently in the United States, sales of cryptocurrencies are not subject to the rules of the “wash-sale”. But this would soon be over Tax optimization. It consists, in short, of sell investments (stocks, bonds, or here: cryptos) in a situation of capital lossesto take advantage of this deductible loss taxes, then redeem quickly the same investments previously sold.

If this last modification were to pass, MicroStrategy would not, for example, had no use selling a small part of these bitcoins at the end of 2022 to reduce his taxes. BTCs that have of course been more than amply redeemed subsequently, since the conviction bullish of Michael Saylor in the king of cryptos remains intact.

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