Topic: Will proposals to tax unrealized capital gains kill Bitcoin and other Cryptos? - page 2. (Read 242 times)

Nothing came from it but it was only a year ago. Since then Democrats have now gained control of the House, Senate and White House. And many people believe there was massive election fraud. Their actions were very suspicious. The Democrats are also acting like real dictators by suppressing free speech, surrounding themselves with thousands of troops. It is so obvious they are guilty as hell. But they own the media, big tech and courts. So this worries me because if they can steal an election and get away with it then anything is possible. They are now emboldened and will steamroll their way forward passing anything they deem fit.

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

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.

that WSJ article is from april 2019, btw.

wyden's tax plan never materialized into anything. it was never even written into a bill AFAIK, and now we're in a brand new legislative session. biden has proposed an increase in capital gains taxes (typical democrat) but i think wyden's plan was always dead on arrival.


it depends on your income/assets---the proposal only applies to those with income in excess of $1 million or assets exceeding $10 million.


yes, that was the basis for a lot of criticism of his plan---it would crash the markets according to tax deadlines, and this could be particularly harmful in more illiquid markets.

You would be taxed on the dollar value gains.

For example let's say your 15 BTC is worth $30,000 each on January 1st for a total of $450,000. On December 31st Bitcoin is worth $60,000. Now your portfolio is worth $900,000. Your capital gains for the year were $450,000 in dollar terms even though your BTC holdings remained at 15. If the law changes to where the government can tax unrealized capital gains you would now have to pay taxes at the going rate on your $450,000 profit. And this would be the case every year! This would force you to sell some of your BTC to cover the tax bill. Not a good situation at all!

https://www.c[Suspicious link removed]m/2021/01/20/oaktrees-howard-marks-on-unrealized-capital-gains-tax-janet-yellen.html

Taxing unrealized capital gains is not practical and will hurt sentiment among investors, said Howard Marks, co-chairman and co-founder of Oaktree Capital.
Unrealized capital gains refer to the theoretical increase in value of assets that an investor is holding onto.
Janet Yellen, Biden’s nominee for Treasury Secretary, said she would consider taxing such unrealized gains to boost government revenues, reported Reuters.

I'm not sure to get it correctly.

Does it mean, for example, I bought bitcoin in 2020, on January 1st 2021 I own 15 BTC. I do nothing during the whole year, don't sell any sats. On December 31 2021 I still own the 15 BTC so. I will still be taxed even if I didn't make any sales with gains in 2021?

2022 the same scenario, on December 31 I have still the 15 BTC with me. I will be taxed AGAIN in 2023 for my investment ongoing in 2022???
2023 I decide to sell everything, with let's say a 150% ROI. AGAIN taxed in 2024 for the profits I have realized in 2023?

That's sounds crazy, people take the risks and the government takes the profits. Taxing unrealized capital gain... without knowing it will be a gain or a loss for the person. What if it ends in a loss and not gains? I guess they won't refund the taxes paid.

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.”