There’s talk that the Biden Administration is considering a massive 80% crypto capital gains tax going around.
Here’s everything crypto lovers need to know about those rumors.
- To start off with, rumors are claiming that Treasury Secretary Janet Yellen wants to institute the 80% crypto capital gains tax.
- There’s been no official confirmation of this though.
- For those unaware, a capital gains tax only goes into effect when someone sells an asset, such as crypto or stocks.
- It takes a percentage of the profit that the person makes from that sale and applies a tax to it.
- There’s also long-term and short-term capital gain taxes.
- Those vary depending on it the asset was held for a year or less.
- The current upper limit on long-term capital gains taxes is 20%.
- Some rumors claim that President Biden wants to increase this to nearly 40%.
- Then there’s that 80% crypto capital gains tax rumor to account for.
- The idea of an 80% crypto capital gains tax has some investors in digital assets worried.
- That’s been clear by the selloff that many cryptos, including Bitcoin (CCC:BTC-USD), have seen lately.
- Some analysts believe that an 80% crypto capital gains tax is unlikely.
- Rumors of the crypto capital gains tax increase come alongside talk of other tax increases.
- Unnamed sources are behind the rumors, and they come as discussion continues about how capital gains taxes should be collected.
- That includes a push from Congressional Democrats that would make investors have to pay on them yearly instead of when they are sold.
Ron Wyden, the Senate Finance Committee Chairman, said this about the plan.
“There ought to be equal treatment for wages and wealth. On the Finance Committee we will be ready to raise whatever sums the Senate Democratic caucus thinks are necessary.”
The rumors today are having a major effect on cryptocurrencies.
Many are falling as crypto investors reel from a selloff and these rumors. However, there are others that might still be worth investing in. A few examples include Dogecoin (CCC:DOGE-USD), Ethereum (CCC:ETH-USD), and PancakeSwap (CCC:CAKE-USD). Investors can learn more about them below.
More Crypto News
- Top Stocks 2021: If You Only Buy One Crypto, It Better Be Dogecoin
- Ethereum (ETH) Price Predictions: Where Does ETH Go as Bitcoin Dominance Drops?
- How the SafeMoon Crypto Frenzy Is Making PancakeSwap (CAKE) Look Sweet
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.