Topic: Will proposals to tax unrealized capital gains kill Bitcoin and other Cryptos? (Read 267 times)

Someone explained that this was an old proposal which never actually made it to even a bill. This sounds pretty much a mad plan. People would stop buying real estate, stocks and would basically stop owning ANYTHING, lest they need to pay taxes.
This would still align with another radical vision about a future when everything will be rented and nothing will be owned by the people. They are all pretty happy working and earning paychecks while everything has become a "service". I doubt any government can ever implement something like this without having a total revolution of sorts.

Jesus fuckin' Christ....that's the way it should be.  You haven't actually realized a profit until you've sold, and nobody should have to pay the government just because something they own went up in value.  Would this include real estate?  Stocks? 

This democratic idea is so asinine that I hope it just dies on the floor.  If the government truly wants to address income inequality (not a new problem, by the way), this is about the worst way of going about it that I could think of.

I bet you this is their plan to pay for all of this stimulus money that's being handed out like monopoly notes.  I'll have to keep an eye on this.  Thanks for posting this, OP.

People will not have an incentive to HODL if they have to pay taxes on unrealized BTC capital gains yearly. They would have to sell to pay the taxes. This will not be a good development for Bitcoin and others imo. What do you think?

www(dot)wsj.com/articles/top-democrat-proposes-annual-tax-on-unrealized-capital-gains-11554217383

WASHINGTON—The top Democrat on the Senate’s tax-writing committee proposed taxing unrealized gains in investment assets every year at the same rates as other income, offering an idea that would transform how the U.S. taxes the wealthiest people.

The proposal from Sen. Ron Wyden of Oregon is the latest plan from Democratic lawmakers and presidential candidates for boosting taxes on the wealthy to address economic inequality and provide funding for their policy agenda. While this specific proposal has little chance of becoming law soon, such ideas could quickly gain momentum if the party succeeds in next year’s elections.

Under Mr. Wyden’s concept, capital gains would be taxed annually based on how much assets have gained in value. Now, by contrast, gains are taxed only when assets are sold and at a top rate of 23.8% instead of 37% for ordinary income.

“It would be a huge change,” said Lily Batchelder, who was a tax-policy aide to President Obama. “It would be a really big shift in our income-tax system.”

but the problem with this method of taxation is that if they start it with bitcoin then they have to tax everything else that is similar to bitcoin. if you have anything that gains value then you end up being forced to pay taxes on it and since you won't be able to comply you'll have to sell all your belongings to be able to pay those taxes.
that simply can not happen. not to mention that putting a price on something that is not yet sold is not possible.

what will happen (or rather continue to happen) is that whenever that property is converted to fiat and the profit is calculated, then you'll have to pay the tax on that sale.

Now, by contrast, gains are taxed only when assets are sold and at a top rate of 23.8% instead of 37% for ordinary income.

i think it's being presented as a radical proposal so everyone will be shoehorned into accepting the moderate democrat position---biden's tax plan. https://taxfoundation.org/joe-biden-tax-plan-2020/

that would reverse the trump tax cuts and increase payroll taxes for high income earners, and it would increase the corporate tax rate.

the wyden plan would be absolute madness and would wreak havoc on the markets. legislators just aren't that interested in rocking the boat and changing the status quo. it's a dog and pony show.

I would be very concerned about whatever comes out of this tax proposal. Yellen just recently brought it up.

I have to agree with you, no matter the political party that you are in, it is all a shitshow because they all want to stay in power. Hopefully that this regulation does not come back to get reconsidered because it will only struck the medium range income earners and those below them, it will not affect the rich people as they say it on paper, rich people can always pay 0 dollars in taxes if they want to, I think the best course of action for this kind of farce is to specifically target the high income earners with a higher taxation without any possibility of writing it off or any other way.

I have to agree with you, no matter the political party that you are in, it is all a shitshow because they all want to stay in power. Hopefully that this regulation does not come back to get reconsidered because it will only struck the medium range income earners and those below them, it will not affect the rich people as they say it on paper, rich people can always pay 0 dollars in taxes if they want to, I think the best course of action for this kind of farce is to specifically target the high income earners with a higher taxation without any possibility of writing it off or any other way.

Nothing better can be expected from these Democrat lunatics. Now they have the trifecta power and they would go for rising taxes right, left and the center. Although the proposal was put on hold, I expect it to be back in reckoning in the near future. Democrats are known for wasting trillions in welfare payments. And for their policies, they need additional revenues in the form of tax receipts. Income tax is already at 40%, and now the best option seems to increase the capital gains tax. BTW, this new tax would rather resemble wealth tax, rather than capital gains tax.