President Biden's tax plan for 2024 aims at crypto-water trade and capital profits
President Biden's tax plan for 2024 aims at crypto-water trade and capital profits
US President Joe Biden published his official budget for 2024 this Thursday-and cryptocurrency transactions are in the crossories.
One of his numerous suggestions is to subdue crypto the same wash-sale rules as stocks and bonds and at the same time increase capital gains taxes for the richest Americans.
bidens budget plan
The plan, according to which white house will contribute to the budget deficits in the coming ten years through a number of corporate tax increases and reductions in the government spending by US dollar lower, despite a higher than expected defense budget of $ 835 billion.
The government's tax priorities is the quadrupling of taxes on share return purchases from 1 % to 4 %. In the meantime, capital gains with the same sentence as wage income will be taxed for those who earn more than $ 1 million a year.
The plan would also close the loophole of the "Like-Kind exchange", which means that crypto dealers sell their underwater crypto investments, claim a deductible loss and buy their tokens back immediately. Estimates from the Wallstreet Journal suggest that this could support the government.
The budget aims to reverse many of the tax changes introduced by the Trump administration that lowered the effective tax rates for companies to under 10 %.
"The budget would set corporate tax rate to 28 percent, still significantly below 35 Percentage, which was before the 2017 tax law," wrote Biden. "This tax change is supplemented by other proposals to create incentives for the creation of jobs and Investments in the United States and ensure that large companies pay their fair share."
The President continues to undertake not to make tax changes that affect those that earn less than $ 400,000 a year. The government claims that its plan will stabilize the budget deficit in about 5 % of GDP, in contrast to 6 % without the policy of the president. Last month Mike Pence, Vice President of the Trump Administration recommended that continued deficits will bring the United States to the course of a debt crisis in the coming decades. In 2021 Bidens Infrastructure Act led a controversial politics technically for miners, validators and developers. Crypto-supporting senators such as Pat Toomey and Cynthia Lummis have promised that this language will be revised at a later date. in draft laws, Lummis also recommended exclusion of bitcoin transactions under 200 USD from the capital application tax better. . Problems with the taxation of Bitcoin