Biden’s Budget Proposal to Increase Capital Gains Tax and Target Crypto Wash Sales

President Joe Biden has proposed a budget that would increase capital gains taxes and target crypto wash sales. This proposal has been met with both praise and criticism from different sectors of the economy.

The proposed budget would increase the capital gains tax rate from 20% to 39.6% for those earning more than $1 million a year. It would also impose a 3.8% surtax on investment income for those earning more than $400,000. This would raise an estimated $700 billion in revenue over the next 10 years.

The budget also includes a provision that would target crypto wash sales. Wash sales are a type of trading strategy used by investors to avoid paying taxes on profits from cryptocurrency investments. Under the proposed budget, investors would be required to report all crypto transactions and pay taxes on any profits made from them.

The proposed budget has been praised by some as a way to ensure that wealthy individuals pay their fair share of taxes. Others argue that it could stifle investment and hurt economic growth.

The proposed budget is still in its early stages and could be subject to change. It is unclear whether or not it will be passed into law in its current form. However, it is clear that the Biden administration is looking to make changes to the tax code that would affect wealthy individuals and those investing in cryptocurrencies.

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• Source: Plato Data Intelligence: PlatoAiStream