Biden Proposes INSANE Tax—Here’s How It Will Affect Crypto Investors

April 27, 2024 11:01 pm Comments

Joe Biden has proposed a massive capital gains tax hike that would raise the top rate to 44.6% on long-term capital gains.

Long-term capital gains refer to any investment held for one year and one day, while short-term capital gains are any gains made during a shorter holding period. Top short-term capital gains rates are already around ~40%.

The Democrat President’s proposal was met with derision and overwhelming negativity, but do you have to worry?

Biden’s new tax hike would only reportedly affect investors making $1 million or more in income a year or $400,000 in investment income during a single year.

However, this is by no means guaranteed. All taxation is theft and the government cannot be trusted to keep its promises—this is largely why crypto was invented in the first place. Here’s what you need to know:

Forbes attempted to clarify the top capital gains rate of 44.6%:

The 44.6% rate would only come to fruition under a separate proposal from the Biden administration’s main capital gains rate increase, and only apply to those individuals with taxable income above $1 million and investment income above $400,000.

Almost everyone lambasted Biden for the tax proposal, including real estate mogul Grant Cardone.

Cardone laid out his argument: “Biden proposes 44.6% capital gains tax, from current 19%. Can’t even come up with his own ideas taking a page out of Trudeau playbook, who raised Canada to 66%. And he ignored how that played out for the last guy who tried it… the entire country went red.”

Benzinga took note of the broad market sentiment and reaction to Biden’s proposal:

Cardone’s critique reflects apprehensions in the investment community, particularly among those like himself for whom capital gains taxes are a significant consideration.

In a separate X post, he outlined how taxes impact personal finances at multiple stages, from earning and spending to investing and passing on wealth, highlighting the government’s role in individual financial activities.

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