Will Kamala Harris Unleash Tax Terrorism on the Crypto Market?

The latest reports in the town suggest that Vice President Kamala Harris is endorsing Joe Biden's FY2025 Budget Proposal of introducing a staggering 45% capital gains tax on long-term investments in the U.S.

Vice President Kamala Harris is reportedly endorsing President Joe Biden's FY2025 Budget Proposal, which includes a 45% capital gains tax on long-term investments in the U.S. The proposal also includes a 25% tax on unrealized gains.

If implemented, this would be the highest capital gains tax rate in three decades, since 1992. The tax would apply to long-term capital gains over $1 million for individuals and $500,000 for couples filing jointly.

Currently, the top capital gains tax rate is 23.8% for individuals and 29.6% for couples filing jointly. The new tax would apply to net investment income, which includes capital gains, dividends, interest, and rents.

This news has sent jitters across the crypto market, with Bitcoin and altcoins turning red in the past few hours. The price of Bitcoin fell below the crucial support of $24,000 earlier today.

However, the crypto market recovered quickly from the morning dip, and Bitcoin is now trading above $24,200. Most altcoins have also pared some of their earlier losses.

Despite the market recovery, traders are still concerned about the potential impact of the new tax on crypto investors.

If implemented, the tax would seriously hurt long-term Bitcoin investors and might even force crypto companies to eventually move out of the United States in the long-term.

Moreover, an additional 25% on the unrealized gains will also hurt the holding power of long-term investors.

Crypto industry veterans and Bitcoin investors have started calling out the “crypto reset” bluff by the Kamala Harris team. Bitcoin investor Toby Cunningham also endorsed to consider a second citizenship apart from the US.

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