Imagine, for a moment, that you are hodling onto your crypto and the full moon comes out. All of a sudden, your BTC, ETH, LEO, or whatever are now worth 30x more than they were last year.
Imagine having to sell half of it just to pay your taxes.
That's what the Biden-Wyden plan means for crypto.
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Yeah I’m not withdrawing to fiat.
Biden can have this instead 🖕🏾
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Sell for life changing amounts after taxes paid... or avoid taxes and see all the gains disappear like clockwork... decisions decisions.
I plan to sell some amount (somewhere between 10 and 50% of current holdings). Let's see how this bull plays out.
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So in other words US citizens should be scared of becoming wealthy because it seems it's about to get touch with this tax proposal by Biden. My word.
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I know, right? LOL
Americans are so damned greedy...
I have thought of moving to Puerto Rico for a year, and I may have to reconsider that as a tax strategy.
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It's a great strategy for now. Of course, it's also under threat as Dems have been lobbying for PR to become a state.
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In order to benefit from Puerto Rico, you have to work AND live in Puerto Rico. Your operations where you gain your most income has to be within the territorial boundaries of the Puerto Rican islands.
I'm part Puerto Rican. Personally, I was thinking of moving to Puerto Rico, but Florida is comfy.
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Puerto Rico might get a bit more comfortable if they can actually get some decent hurricane relief funding like they should have gotten but didn't under the soon to be ex administration...
Almost 40% is a lot. It's 30% for under €30,000 and 34% for that in excess of €30,000.
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Biden's tax plan is absolutely horrible for crypto holders. Crypto is helping the poor while the government is making sure the poor get screwed in taxes.
Are these taxes really for our benefit?
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Up to now, crypto has been used as a place to stash fiat to avoid taxes. The government doesn't like that.
The thought of owing taxes on assets I did't sell, merely because they appreciated is an anathema. I am glad I exited mutual funds long ago..whoever I am thinking of selling my dividend paying stocks and depositing everything into a index fund...do I have to pay taxes on that when it appreciates?
Now I am really depressed about owning crypto out side a tax deferred account. I will have see if I can own crypto inside the whole life incsurance policy or my IRA...other then grayscale which doesn't give 1:1 Bitcoin for dollar invested, as far as I can determine.
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Definitely won't work inside whole life insurance. Self-directed IRA, sure.
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Didn't they ever read about the King who taxed his kingdom into starvation? We need a tax haven token. Maybe the Swiss will come up with it.
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Tokenization is an answer to many problems. You can wrap all sorts of market operations inside a token which would otherwise be tax events.
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Why not add that to home ownership?
How about having people paying on their gains on their homes over the course of a year? What could go wrong? If you dont have the money, sell your house if you cant pay the tax.
After all home ownership is for the rich.
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There have been proposals floating around for years that homeowners should pay a tax on the imputed income they have from not having to rent.
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I've heard murmurs along those lines from some politicians here, too. However, it would be a political suicide for any mainstream politician to suggest such a thing. Too many voters are homeowners.
As for "imputed income", the term itself makes me want to stock up on ammo.
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Forward it to Wyden.
Any tax proposal increase is a good tax proposal.
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What's really twisted is that this probably hurts the 'middle' rich with families that keep them stuck in the States the most - anyone with serious wealth - several millions in capital can probably afford a dual country residency work around - assuming they can deal with the inconvenience of living somewhere outside of America for a certain period every year!
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The US is very aggressive in this regard. If you are an American taxpayer, you owe taxes on income from anywhere in the world. They do give credit for taxes you paid to other places though.
And if you give up your American taxpayer status, they will charge you a wealth tax on the way out (above certain thresholds).
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It's something that has long amused me - despite all the rhetoric about small government, when you look at the FED you have some of the highest tax rates in the world.
And I get the feeling you don't get much back in return for those taxes. At least in Europe we get decent public services.
And I think it's a lot easier to move around with your wealth intact too, I mean there are plenty of little havens - Switzerland is just the most obvious!
I couldn't live in the States - at least with politics here in Europe you can sort of laugh at the incompetence of it all, all I see in US Politics is just lies and corruption.
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Total tax rate in the US is about 40% when you add up all the taxes. Income tax, payroll tax, sales tax, property tax, “sin” taxes, etc etc.
And hey, we get an insolvent old age fund and blowback terrorism out of it. Sweet deal!
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And I deliberately didn't mention ANYTHING about arms expenditure, or did I? I think I actually make a snarky comment about your getting some nice aircraft carriers out of your taxes but deleted it!
I think that may have come down a little, I'm sure the last time I investigated it was nearer 45%, but that was in the 1990s, I actually lived in the States for a year - did an American Studies degree, ironically 100% funded by the UK tax payer.
Maybe you need to follow Ron Swanson's lead and seek to bring down the government from within?
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Not from within, but I use their tools against them. I keep about 20 million USD away from the government and in people's pockets each year. Granted, they inflate the money they want anyways, but at least my clients aren't helping them.
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Good man! I'm probably not as tax-averse as you are (I mean UK taxes paid my wages for 20 years!) but where the US FED is concerned that's one institution I'm most happy to hear is receiving less money!
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With regard to cryptocurrency, this strategy is utter nonsense. Users that hold through x100 and 98% drops will owe the IRS millions of dollars they don't have. Fools need to learn how how to math.
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As if they care lol
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True, but I have to believe that such a thing cannot remain a law for long when proven to be completely untenable on a foundational level. Guess we just have to hope the Senate blocks everything. The GOP have a long history of being obstructionists they have great experience.