News Bitcoin's Value Plummets as Biden Mulls Nearly Doubled Capital Gains Tax

[Admin]

Bitcoin's value fell nearly 25% after reports that U.S. President Joe Biden plans to nearly double the capital gains tax on the rich.

Bitcoin's Value Plummets as Biden Mulls Nearly Doubled Capital Gains Tax : Read more

 

[Phaaze88]

Really? A few words from a someone? Coincidence, or is the market that fickle?
Can he actually execute though?

What about some of these large companies that get away with paying no tax and still get returns? Those need to get busted big time.
That may be more productive than trying to tax the wealthy double.


Bitcoin's still profitable and going back up...

 

[LordVile]

Really? A few words from a someone? Coincidence, or is the market that fickle?
Can he actually execute though?

What about some of these large companies that get away with paying no tax and still get returns? Those need to get busted big time.
That may be more productive than trying to tax the wealthy double.


Bitcoin's still profitable and going back up...

He can literally sign anything he wants into law and it can’t be undone unless a judge finds it unconstitutional

 

[Phaaze88]

He can literally sign anything he wants into law and it can’t be undone unless a judge finds it unconstitutional

Uhh, doesn't that have to go through Congress and the House first?

 

[hotaru.hino]

Uhh, doesn't that have to go through Congress and the House first?

Executive orders.

 

[Phaaze88]

Well, fudge...
I still think it'd be more productive to target companies getting big tax breaks... who may then find a way to trickle it down to consumers...
/sigh
There's just no making everyone happy.

 

[Kahless01]

He can literally sign anything he wants into law and it can’t be undone unless a judge finds it unconstitutional

you have no damn idea how the government works. executive orders dont have the power to change tax rates either. so both of you can take a hike and listen next time you take high school government class. only congress has the power to change tax rates. and with manchin there is no guarantee democrats can just pass whatever they want even with the majority.

 

[hotaru.hino]

so both of you can take a hike and listen next time you take high school government class.

It would be nice if they actually taught that in the first place.

 

[daworstplaya]

you have no damn idea how the government works. executive orders dont have the power to change tax rates either. so both of you can take a hike and listen next time you take high school government class. only congress has the power to change tax rates. and with manchin there is no guarantee democrats can just pass whatever they want even with the majority.

^This!
It would be better if the US Congress just straight up banned Crypto currency like India did.

 

[Heat_Fan89]

^This!
It would be better if the US Congress just straight up banned Crypto currency like India did.

Oh, that's coming. First they came for your internet tax and then they came after your crypto. Whenever someone or a group of people are making serious money, you can bet on it that it eventually gets the governments full attention. The reason the US Govt has allowed crypto's to go crazy is because they have watched and learned. Get ready for a world where cash will be banned and replaced with digital currencies. I'm sure the government must be saying, thanks cryptos for teaching us how to do it.

 

[hasten]

This article is silly. So the announcement of a potential capital gains tax increase is the reason for a correction that's been going on for days prior? Sound logic. Everyone is moving their money to where? It would effect all investment gains and all markets not just btc and crypto. Stick to computers.

BTW this correction isn't a shock, was predicted, and isn't the first. Heck it happened in Feb. And what in the world are they teaching kids? The discussion on governance and executive orders was nothing but misinformed babbling. I guess that's what happens when you have 5 consecutive years of lies and fear mongering with young people getting all their information off their feeds.

 

[hotaru.hino]

^This!
It would be better if the US Congress just straight up banned Crypto currency like India did.

Congress can't enact laws either. The President has to sign off on it or if vetoed, Congress can override it.

In any case I ran across this which suggests the President of the US through a bunch of other means can change taxation without congressional action: https://chicagounbound.uchicago.edu/cgi/viewcontent.cgi?article=2485&context=law_and_economics

Existing statutes give the President and his Treasury Department broad authority to implement important elements of the administration’s tax agenda without further congressional action

Which to me this means that yes, congress can enact and change the law itself, but that doesn't mean the President or the US Treasury Department can act within those laws to further something else. For example, the tax brackets are adjusted by the IRS every year. The rate may not change (that's probably law), but who pays what changes. And who decided that crypto is taxable? The IRS did. As far as I know, Congress didn't make a new law to tax it, the IRS just said "it's property" and boom, existing tax laws made it taxable.

So if something already exists, then the President can do whatever he wants.

At the end of the day though, I'm sure none of us here are experts in US law and you'd be naive to think that the Constitution is the only place you have to look to see what the government can and can't do.

 

[Unolocogringo]

Bitcoin's value fell nearly 25% after reports that U.S. President Joe Biden plans to nearly double the capital gains tax on the rich.

Bitcoin's Value Plummets as Biden Mulls Nearly Doubled Capital Gains Tax : Read more

Capital gains tax rate is 15% before you take your deductions.
Self employment tax is 28% before you take your deductions.

So a person like Steve Jobs was paid $1 a year salary. Plus $300-400 million a year in stock options.
When he sells his stocks back to Apple he had a tax rate of 15% before deductions.
Or any land developer/ investor/stock market investor etc.... same 15% rate.
Instead of the normal 28% + us average people pay.
Sound fair they should pay a similar tax rate as me.

 

[DSzymborski]

Capital gains tax rate is 15% before you take your deductions.
Self employment tax is 28% before you take your deductions.

So a person like Steve Jobs was paid $1 a year salary. Plus $300-400 million a year in stock options.
When he sells his stocks back to Apple he had a tax rate of 15% before deductions.
Or any land developer/ investor/stock market investor etc.... same 15% rate.
Instead of the normal 28% + us average people pay.
Sound fair they should pay a similar tax rate as me.

I'm probably going to regret this (and I won't talk any specific politics, only the broad theoretical), but there's a reason capital gains typically have a lower tax rate: taxes are paid on nominal gains, not real gains. For the same reason, that's why short-term capital gains are taxes as ordinary income.

 

[SonoraTechnical]

Good let it get devalued..... then we can all afford video cards again...

 

[sizzling]

Good let it get devalued..... then we can all afford video cards again...

It still about 70% up on the start of the year, this is not that big of a swing for Bitcoin

 

[Sippincider]

U.S. President Joe Biden plans to nearly double the capital gains tax

Keep an eye on where the double capital gains would be set to kick in.

As long as your net worth is under that of the richest person in Congress, you'll probably be fine. 💸💸

 

[LordVile]

you have no damn idea how the government works. executive orders dont have the power to change tax rates either. so both of you can take a hike and listen next time you take high school government class. only congress has the power to change tax rates. and with manchin there is no guarantee democrats can just pass whatever they want even with the majority.

They have the power to change anything as long as it's not unconstitutional. Trump signed a tax EO last year.

 

[Umfriend]

there's a reason capital gains typically have a lower tax rate: taxes are paid on nominal gains, not real gains.

What does this mean? Are you referring to capital gains taxes becoming payable only on sale of the asset?

 

[Co BIY]

As much I anticipate the Biden plans to damage the economy and generally be badly thought out I doubt they have any connection to the wild fluctuations of Bitcoin.

1. As others have covered, raising taxes rates in the US is complicated and will be moderated by many factors, Taxes rising was baked into the election outcome and has been known to the market for at least four months now.

2. US capital gains taxes are only going to be owed by: a. US Citizens , b. Those who actually realize profits (those who figure out how to "sell high"), c. those who choose to declare their Bitcoin earnings on their tax forms (isn't this the whole point of the blockchain )

3. A capital gains tax raise should also damage all comparable asset classes (Banksey art, bananas on walls, Brooklynn bridges, ect... ) and increases the value of Bitcoin's anonymity and independence from any one government.

4. The value of the coin has no fundamentals, so no news from the real world should have any predictable effect on it's value. Any rational thought expended on it's value however should result in a very steep decline.

 

[Blackink]

And today the market went up!
Where's the worry about taxes now?!?

And you can't really blame the drop in the market yesterday because Biden mentions an increase in capital gains taxes.
The market is way overbought as it is.
A nominal correction is long overdue.

Carry on......

 

[caseym54]

Executive orders.

Uh, no. This comment gets an "F". He cannot order anyone outside the executive branch of government to do anything at all. And even inside that, there are rules.

Capital gains tax rate is 15% before you take your deductions.
Self employment tax is 28% before you take your deductions.

Uh, no. Both of these are wrong. Cap gains is 20% (plus about 3% for medicare) for large gains. Self-employment tax (which does not apply to capital gains at all) is 15.3% on consulting and other self-employment income, and goes towards Social Security and Medicare.

 

[DSzymborski]

What does this mean? Are you referring to capital gains taxes becoming payable only on sale of the asset?

If I buy something for $100,000 dollars in 1991 and sell it for $120,000 dollars in 2021, that's a nominal $20,000 profit. But it's actually an $80,000 loss, give or take.

 

[shady28]

Capital gains tax rate is 15% before you take your deductions.
Self employment tax is 28% before you take your deductions.

So a person like Steve Jobs was paid $1 a year salary. Plus $300-400 million a year in stock options.
When he sells his stocks back to Apple he had a tax rate of 15% before deductions.
Or any land developer/ investor/stock market investor etc.... same 15% rate.
Instead of the normal 28% + us average people pay.
Sound fair they should pay a similar tax rate as me.

That's not correct. Capital gains tax is progressive. If you make under 40K/yr, you pay zero. 40K-80K you pay 10%. 80K-460K(ish) you pay 15%. Over 460k you pay 20%.

Wealthy people like Jobs could easily avoid those taxes though. They do not even pay the 20%.

To give an example, you can buy Municipal bonds or funds that give a distribution on tax-free investments, and get a 5% return. A billion dollars in such a fund would give you $50M/year. If you have $10B in stocks, some of them undoubtedly have lost value, so you can sell a mix of loser stocks and winner stocks and effectively have zero capital gains. You can also sell one property, and buy another, and have the gains from the first property cancel the 2nd one out. Basically you can just keep moving money from one thing to another, and it looks like you never made any money at all, meanwhile the total value of what you own keeps going up and up.

The people most affected by this will be :

- People who make between 137K and 400K / year due to raising the Social security cap from 137K to 400K. This is the same stunt Obama pulled, it's wordsmithing because they don't call it a tax.

- People who make over 200K /yr or married making over 250K / yr will have to pay their capital gains tax (15%) plus a 3.8% ACA "Fee". Again, wordsmithing.

All politicians are expert liars. This is a fact.

 

[hannibal]

You all are wrong!
The bitcoin did come down, because i have a headache!



in reality the only thing why bitcoin would come down, if the tai, would be a bitcoin tax. And even then only if it would be international tax, or at least most countries in the world would make such a tax...
The rest of the world would not care a bit, if USA increase taxes or not. In long run the economical situation of the USA could affect the economy clobally... somewhat. But based on what i can see... it would only put crypto coins up. For my eyes this seems normal crypto fluctuation... ofcourse there maybe be a crash coming, because crypto is more like pyramid hoax, than real currency, because its value is based purely on the trust.
It is also raining in here today... maybe that is the reason for crypto drop...