The tax on crypto profits are already exorbitant, and now Biden plans to enforce new laws that could make it even higher. His plan is to use crypto tax to fund his $1 trillion infrastructure plans in the US. The word used was step-up, which could possibly mean that they are planning to increase the rates very soon. Biden and a group of lawmakers are working on the details; we have to wait and see what this turns out to be.
The new crypto tax laws
Biden’s government is going to present a new bill of $550 billion that will be spent on building the US infrastructure. They are planning to use this money across the next 8 years to build roads, bridges, internet, EVs, airports and more. And the bill also says that any crypto transaction over $10,000 needs to be reported to the IRS. And through this, they are expecting to raise another whopping $28 billion. They want to enforce a tax on crypto transactions more seriously, which will reap economic benefits in the future.
What to do?
Well, the laws will clearly state that the tax needs to be paid on profits. But if you don’t sell, then you don’t pay. The best way to avoid these high tax percentages is to hold your crypto in a hardware wallet to keep it safe. This is a simple workaround anyone could use and is completely legal. Another important thing to note is that paying through crypto directly where possible could also be an easy way to avoid tax, but I am not quite sure how that will work. Or maybe the government will make any specific laws for the same.
What are your thoughts on the new crypto tax laws that Biden will enforce very soon? And do you think that the US is putting too much pressure on crypto investors? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.