Politicians Want to Close All Tax Loopholes for Cryptocurrencies in the US
OREANDA-NEWS. Democrats have released a summary of proposed tax increases to help with the implementation of a $3.5 trillion spending package and close some tax loopholes. If adopted, cryptocurrencies will be subject to an increase in the capital gains tax to 25%.
In addition, cryptocurrencies will fall under the Wash Sale rule — a prohibited practice of selling an asset at a loss and buying the same asset to reduce the amount of taxes paid. Thus, it is planned to collect about $16 billion in additional funds from the crypto industry.
However, such measures will not bring enough money to the budget for the adoption of a large package of social spending, which is promoted by the head of state. President Joe Biden expected to raise the maximum corporate tax rate to 28 percent instead of the 26.5 proposed by members of his party.
According to sources, the capital gains tax will rise from 20 percent to 25 instead of the figure of 39.6 percent that the president proposed. The Democrats also intend to introduce an additional fee of three percent for persons with adjusted gross income (profit after deducting all non-refundable expenses and other deductions) exceeding five million dollars.