Reports have surfaced indicating a prospective 1% wealth tax on significant holders of Bitcoin (BTC). Although there has been no official acknowledgment of such a measure, the rumors have generated widespread attention following the dissemination of a letter addressed to United States President Joe Biden.
The proposed bill entails that any individual or organization in possession of cryptocurrency holdings surpassing $1,000 must report such assets annually to the Internal Revenue Service (IRS). The bill further proposes a 1% wealth tax on entities with digital asset holdings exceeding $500,000.
Certain individuals speculate that the 1% tax may serve as a governmental endeavor to control the crypto market and curb the ability of whales to manipulate Bitcoin’s price. However, the purported bill, which has been denounced as inaccurate, intends primarily to bridge wealth gaps in the United States. The proposal calls for individuals and entities holding substantial crypto wealth to contribute to essential public expenditures and investments.
Understanding crypto tax in U.S.: In 2021, the Biden administration presented a tax proposal advocating an increase in capital gains tax to 43.4% for individuals with incomes exceeding $1 million. This proposition faced substantial criticism, with influential venture capitalist Tim Draper expressing concerns that it would stifle economic growth.
