cryptonews.net
US President Joe BIDEN will introduce a budget proposal that promises to come as a nasty surprise to crypto traders and investors, as it suggests imposing a capital gains tax on some investors and applying the wash sale rules to cryptocurrencies.
Biden decided to end the strategy in which a crypto trader sells assets at a loss to reduce tax before buying them back immediately after such a sale. So far, it is not allowed in the case when it comes to stocks and bonds. However, cryptocurrencies are currently not subject to such regulations as digital assets are not classified as securities.
Also, Biden's plan proposes to nearly double the capital gains tax rate for investors earning at least $1 million to pay 39.6% on long-term investments, up from the current 20% rate. He also plans to raise the income tax on corporations and wealthy Americans.
Image: Money