Biden to Double Capital Gains
A few surprises are in store for crypto traders and investors as the upcoming budget proposal by U.S President Joe Biden plans to propose doubling of capital gains and crack down on crypto wash sales.
On March 9, 2023, the Biden administration is set to release its fiscal 2024 budget plan aimed to reduce the deficit by nearly $3 trillion over the next decade including changes to crypto tax treatment aiming to raise $24 billion according to reports.
An end to tax-loss-harvesting which is a strategy which a crypto trader sells assets at a loss for tax purposes before repurchasing them immediately after is one of the proposals included in the budget plan as the strategy Is not permitted when stocks and bonds are involved.
It does appear that the U.S government is looking to change that making that timing extremely significant if the rule is applied as many crypto holders who entered the crypto space at the 2021 peak are currently suffering from heavy losses.
According to Bloomberg the Biden budget is proposing to nearly double capital gains tax rate for investors from 20% to almost 40% plus raising income levies on corporations and wealthy Americans.
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