As a seasoned economist with over three decades of experience, I have seen my fair share of fiscal policies that have sent shockwaves through various markets. The latest proposal by Vice President Kamala Harris to impose a 45% capital gains tax on long-term investments and an additional 25% on unrealized gains is no exception.
Recent town news indicates that Vice President Kamala Harris is expressing support for President Joe Biden’s FY2025 Budget Plan, which proposes a significant 45% capital gains tax on long-term U.S. investments. Additionally, she’s contemplating imposing a 25% tax on unrealized gains. This development has sparked concerns in the cryptocurrency market, causing Bitcoin and other altcoins to decrease in value over the past few hours.
Will Kamala Harris Unleash Tax Terrorism?
On the day following Vice President Harris’s proposal to raise corporate tax to 28%, speculation arises that her future focus may be on a 45% long-term capital gains tax. This proposed rate would mark the highest tax increase sought by the Democratic Party in nearly three decades, since 1992. If enacted, this could potentially have significant negative effects on long-term Bitcoin investors and might eventually prompt crypto companies to relocate outside of the United States in the long run.
1. Apart from the extra 25% on unrealized gains potentially weakening long-term investors’ holding capacity, some experts and Bitcoin enthusiasts are questioning the proposed “crypto reset” by the Kamala Harris team. Bitcoin investor Toby Cunningham even suggested exploring alternative citizenship options beyond the U.S. as a possible response.
45% CAPITAL GAINS TAX
Kamala Harris proposes 45% long-term capital gains tax – the HIGHEST since 1922.
Obtaining a second citizenship should be priority number one during this market’s peak, considering there are countless reasons for doing so. The current government’s behavior shows no signs of improvement and is likely to worsen significantly.
— Toby Cunningham (@sircryptotips) August 20, 2024
Although advocates from the cryptocurrency sector have been attempting to boost Vice President Harris’s reputation through the “Crypto for Harris” campaign, she has yet to offer any backing towards the industry.
Shunning Bitcoin and Crypto
A day prior, the Democratic National Committee (DNC) launched their platform, outlining their party values in preparation for the 2024 Presidential Elections. Notably, a comprehensive 92-page document did not include Bitcoin or cryptocurrency, suggesting that these issues are no longer significant to Harris’s agenda.
On the flip side, it’s been made clear by the Republican Nations Committee (GOP) that they aim to stop the clampdown on cryptocurrencies while fostering innovation within this sector. It’s no surprise then that Donald Trump has regained an advantage over Kamala Harris in the Polymarket platform. Such anti-investor and corporate policies from her team could potentially lead to them losing even more ground.
Attention will be focused on the upcoming FOMC meeting and Jerome Powell’s anticipated speech, as many anticipate that the Fed may announce interest rate cuts in September.
At the moment of reporting, the value of Bitcoin has dropped below $60,000 yet again. Over the past day, various altcoins have experienced a dip in value, ranging from a 3% to a 5% decrease.
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2024-08-21 07:18