Joe Biden wants to change cryptocurrency taxes

  • The President of the United States is looking to make crypto changes in the next nationwide budget plan.
  • Biden’s primary goal is to raise $24 billion from said crypto tax change.
  • A first step was taken in February when it was established that anyone who has dealt with digital assets must report their operations.

The next budget plan to be announced by Joe Biden would have an important change on taxes on cryptocurrencies if the project manages to be approved in the Chamber of Deputies and in the Senate.

According to the administration of the current President of the United States, this is aimed at fighting the money laundering trade. Currently, there are clear rules about trading stocks and bonds but it does not apply to digital assets.

It is that at this time, investors can sell certain assets and accept a tax-deductible loss before reinvesting, an illegal practice that the government in this case seeks to change the modality.

The main goal of this is to raise more money, however, since the United States suffers from a $3 trillion federal budget deficit. With this new tax on cryptocurrencies, it will seek to raise about 24,000 million dollars in 2024.

It is worth mentioning that this will not be easy to do because the Republicans are the majority in the Chamber of Deputies.

It would not be the first step

Regarding cryptocurrencies, Biden has already made some moves that have affected crypto investors, especially around tax season.

In February, for example, the Internal Tax Service expanded the scope of these taxes. Now, anyone who has dealt with digital assets is now required to report their trades.

A survey by CoinLedger revealed that only 58% of people included cryptocurrencies on their 2022 tax returns, while the remaining percentage decided not to declare any digital assets despite owning them.