The post Kamala Harris Tax Plan Could Trigger Crypto Market Sell-off appeared on BitcoinEthereumNews.com.

Zac Townsend, CEO and co-founder of Meanwhile, has expressed concerns about Kamala Harris’s proposed 25% unrealized capital gains tax. Townsend, a vocal critic of the plan, warns that the tax could lead to a significant sell-off in crypto markets and harm investors across the board. Kamala Harris’s 25% Unrealized Gains Tax Proposal Last month, Vice President Kamala Harris endorsed a bold new fiscal policy that could transform how unrealized capital gains are taxed in the United States. This proposal is part of a broader economic strategy under the current administration. It suggests a 25% tax rate on the appreciated value of unsold assets, including cryptocurrencies.  Critics argue that this move deviates sharply from traditional tax norms, which have typically taxed profits only upon the realization of gains through sales. The tax specifically targets the assets of Americans whose net worth exceeds $100 million. While it aims to address inequalities within the current tax system, the policy has stirred unrest among investors.  According to Townsend, the implementation of such a tax will compel large-scale asset holders to liquidate portions of their portfolios. This could flood the market with digital currencies, potentially driving down prices and diminishing the value of investments. For instance, high-profile Bitcoin investors such as the Winklevoss twins, who bought their BTC at just $10, could face a crypto tax bill reaching $1 billion under the new policy. Similarly, Tim Draper, an early investor in Bitcoin with purchases at around $632 per coin, could be hit with a $423 million crypto tax demand. This illustrate the impact of such a tax as these large sell-offs could depress cryptocurrency prices universally. Additionally, Townsend’s critique extends beyond the immediate financial burdens on wealthy investors. He argues that the tax would alter fundamental investment strategies within the cryptocurrency space. Typically, cryptos are favored…

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Filed under: News - @ October 3, 2024 1:14 am