The US presidential administration is planning for several rules to generate more revenue from the crypto & stock traders.
Under the current rules & regulations in the United States, no stock or other asset traders can use wash trade tricks to offset tax. Despite unclear rules on the crypto sector, in the US crypto traders are free from such a rule & they can sell their underwater crypto assets to show a loss, to easily offset the crypto gain tax.
Recently the White House published a notification to confirm that the US government is planning to impose similar kinds of rules, as applicable to stocks or bonds trading. In short, Crypto Investors will not be allowed to offset taxes on their crypto investment gains. Some of the administration’s tax priorities include quadrupling taxes on stock buybacks from 1% to 4%.
The Wall Street Journal (WSJ) claims that the latest proposed rules may shore up $24 billion for the US government.
The newly proposed rules also included amendments to change the tax laws imposed by the Trump administration and further implement new rule tax rates for corporations to under 10%.
“The Budget would set the corporate tax rate at 28 percent, still well below the 35 percent rate that prevailed before the 2017 tax law,” wrote Biden. “This tax rate change is complemented by other proposals to incentivize job creation and investment in the United States and ensure large corporations pay their fair share.”
It is worth noting that all those crypto traders, which make less than $400,000 per year, will not see any changes to the existing crypto tax rules.
Earlier in 2021 a very big controversy started in the crypto sector after a new bill was proposed & later imposed by the Biden administration called the “Biden infrastructure bill”, which aims to force all the crypto companies, crypto service providers, brokers & also crypto wallet service providers including miners & shakers to report their financial activities.