The U.S. presidential election is only 14 days away, and a number of bitcoin proponents have been discussing the capital gains tax implications Joe Biden plans to invoke if he wins the American presidency. According to Biden’s plan, capital gains will be raised from 21% to 39.6% for certain income brackets. Two weeks ago, the current U.S. president, Donald Trump, floated the idea of cutting long-term capital gains cut down to 15%.
In just two weeks, the U.S. may see a new president or it may get another four years of Donald Trump if the incumbent wins the election. This week a number of people have been discussing what taxes will be like in the U.S. if Joe Biden was elected president.
For instance, hip-hop mogul 50 Cent tweeted that he was going to vote for Trump after seeing how Biden plans to tax wealthy individuals in New York. Additionally, a number of bitcoiners have been discussing Biden’s tax increases and the direct form of taxation known as capital gains.
When people discuss the term “capital gains tax,” they are talking about the levy taken by the state when someone makes gains on the sale of any asset after the original purchase. Long-term capital gains apply to levies taken by the state after the asset is retained by the owner for more than 12-months.
Biden’s economic plan is a classic hit from the Dems… pic.twitter.com/FPiKlezqzB
— Bitcoinerisms – Buy Bitcoin (@BitcoinCensus) October 20, 2020
Another individual on Twitter this week is also disgusted with Biden’s tax proposals and stressed:
Biden wants to raise the capital gains tax significantly. This screws over the majority of seniors who live on fixed income. It also impacts anyone taking profits from bitcoin or any investments for that matter.
According to Biden’s tax plan, the long-term capital gains taxes for individuals who make $1 million per year or above will increase from 21% to 39.6%. Making matters worse, some reports show Biden’s proposal could increase capital gains taxes as high as 43.4% because of an added 3.8% payroll tax. However, even though online fact-checkers and mainstream media outlets try to claim that the income bracket proposal is concrete, the Biden tax plan is not 100% set in stone.
In fact, The Hill contributor Naomi Jagoda’s recent report notes that Biden has “repeatedly said” that the increased taxes and capital gains hike will not affect certain income brackets (under $400k to $1M). However, Jagoda’s report also implies that Biden’s tax proposal has not yet been “tailored to meet that objective.” The fact of the matter is Americans cannot take any politician’s promises seriously, and Biden could change the capital gains requirements on a whim.
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