Saturday, December 4

Paying taxes just for owning bitcoin would be a catastrophe for the US

Tax entities in the United States have been able to adapt existing tax legislation to bitcoin (BTC) and cryptocurrencies.

Although this has saved the authorities time and effort by not having to create and discuss new laws, the authorities intend to increase taxes and establish new terms with greater fiscal scope.

In other words, the state is reaching deeper into Americans’ pockets to support social spending.

According Johnny luna, lawyer associated with the American firm Gordon Law Group, this type of tax could be a ‘disaster not only for the world of cryptocurrencies, but for any property that generates capital gains (capital gains) ‘. This was said in an interview with CriptoNoticias.

The lawyer Johnny Luna in an interview with Luis Esparragoza for CriptoNoticias.
Source: CriptoNoticias.

Luna points out that the rises and falls in the price of Bitcoin and cryptocurrencies are constant, so “many people could be subject to paying taxes on something that one day had a high value and the other day it fell substantially.”

The lawyer also considered that, perhaps, the representatives of the Senate who promote these measures do not receive enough votes, due to popular discontent. If measures such as those criticized by the lawyer were implemented, “it would affect the entire stock market, cryptocurrencies, real estate, etc.” He added that, according to him, this “will be fatal for those who invest and for the economy of the United States.”

What are taxes on unrealized earnings?

A realized gain is one that is definitively specified with a final payment to the creditor; that is, it is the withdrawal of earnings on an investment.

On the other hand, an unrealized gain is a term that defines the revaluation of an investment, whose creditor has not yet withdrawn its position or you have not collected the profits you made. This could be applicable, in theory, to cryptocurrencies.

As reported by CriptoNoticias, there is currently a proposal promoted by senators and other officials to apply a type of tax called Tax on Unrealized Profits (Unrealized Capital Gain Tax) in the United States to the wealthiest taxpayers.

Last october 24 Janet Yellen, US Secretary of the Treasury, and Nancy Pelosi, Speaker of the House of Representatives, appeared on the program State of the Union from the CNN channel, where they announced that, from the Democratic party, they would be proposing new taxes, within the framework of the discussion of the Infrastructure Law.

On the same show, in a separate interview, Janet Yellen pointed out that the tax in question was really about the unrealized income tax, although it will be focused on the capital income of the wealthiest.

While the 664 billionaires that the US has (according to the project Billionaires by the numbers) are a minority of the population, the concept of the unrealized income tax a worrying precedent due to its effects on the entire economy.

US economy falters as BTC remains firm

The US economic and domestic climate is deeply disrupted by worker shortages, the port crisis, and energy cuts. To all this is added the increase in the prices of fuel and basic goods summarized in an indicator: inflation.

On October 14, CriptoNoticias reported how interannual inflation between September 2020 and September 2021 reached 5.4%, levels not seen since the 2008 financial crisis.

Meanwhile, the threat of taxes is latent, but Bitcoin has had a revaluation until reaching its historical maximum price again, and consolidating at these levels. October 2021 is now also the month to close with the highest price in the history of BTC.

If the payment of more taxes is imposed on the wealthiest sector, which controls, for example, the energy industry, it is possible that the economically unfavorable scenario will continue to grow. strengthens BTC as a free currency and without intermediaries for the safeguarding of value.