Author: Bhushan Akolkar, Coingape; Translated by: Baishui, Jinse Finance
summary
If Kamala Harris wins the upcoming US election, she might unleash tax terrorism.
A 25% tax on unrealized gains could erode the ability of long-term Bitcoin investors to hold on.
Large-scale taxation could drive the cryptocurrency industry out of the United States, providing leverage to other economies.
New reports indicate that Kamala Harris is supporting Joe Biden’s fiscal 2025 budget proposal, which would impose a capital gains tax of up to 45% on long-term investments in the U.S. If that wasn’t enough, she’s also considering a 25% tax on unrealized gains. The news has rattled the entire cryptocurrency market, with Bitcoin and Altcoin falling in the past few hours.
Will Kamala Harris Unleash Tax Terrorism?
A day after Harris proposed raising the corporate tax rate to 28%, reports surfaced that her next target would be a 45% long-term capital gains tax. This would be the highest tax rate that Democrats have sought to implement in 30 years, since 1992. If implemented, this could severely hurt the interests of long-term Bitcoin investors and could even force cryptocurrency companies to eventually withdraw from the United States.
Furthermore, an additional 25% of unrealized gains would also hurt long-term investors’ ability to hold onto their holdings. Crypto industry veterans and Bitcoin investors have begun calling the Kamala Harris team’s bluff for a “crypto reset.” Bitcoin investor Toby Cunningham also supports considering a second citizenship other than the United States.
While Democratic supporters from the crypto industry have been trying to boost Harris’s profile through the “Crypto for Harris” campaign, she has appeared unwilling to offer any support to the industry.
Avoid Bitcoin and Cryptocurrencies
The Democratic National Committee (DNC) launched a plan the day before to release advocacy ahead of the 2024 presidential election. Interestingly, the 92-page document does not mention Bitcoin and cryptocurrencies, suggesting that these issues are not important to Harris right now.
On the other hand, the Republican National Committee GOP explicitly mentioned ending the crackdown on cryptocurrencies while supporting innovation in the industry. No wonder Donald Trump is once again ahead of Kamala Harris on the Polymarket platform. These anti-investor and anti-corporate policies of the Harris team may cause them to lose further.
All eyes will be on the FOMC meeting and a speech by Fed Chairman Jerome Powell, who will likely confirm expectations of a September rate cut by the Fed.
