US Treasury Secretary Janet Yellen has announced a proposal for a new tax that could affect unrealized capital gains. In CNN’s “State of the Union” program, the minister said that they were dealing with new taxes that would affect the very rich.
The US wants to tax unrealized capital gains
However, the proposals also include a tax that could apply to unrealized capital gains. This means that holders of cryptocurrencies or shares could be taxed before selling the assets. It could also mean that real estate price appreciation could also be taxed before it is sold.
“We are considering a proposal by Senator Wyden and the Senate Finance Committee to impose a tax on unrealized capital gains – on liquid assets held by extremely wealthy individuals, billionaires. I wouldn’t call it a wealth tax. “
She added that wealthy individuals often evade taxation until realization occurs and this would be a way to focus on their assets. It was not clear whether the newly proposed tax would apply to all holders of liquid assets or only to those who exceed the set threshold.
This step has not been very successful within the crypto community, because profits are often unrealized until the assets are liquidated. The new tax could have a big impact on those who hold only a few BTCs at current prices.
Mr.Whale wrote on twitter:
“The fact that Janet Yellen is even considering an unrealized capital gains tax perfectly illustrates the monstrous economic crisis we are in. They are willing to destroy all investor sentiment in order to raise money to finance their reckless spending. ”
Many also asked how the newly proposed tax regime would affect unrealized losses. This is when the value of an asset is lower than the purchase price but has not yet been sold.
Anti-crypto Senator Elizabeth Warren also said she was “pushing hard” to use the wealth tax to help fund President Biden’s Build Back Better agenda.
While Yellen, Democrats and CNN praise the idea of taxing unrealized capital gains, Americans are outraged by the idea and consider it “unconscious.” Freelance journalist Jordan Schachtel noted:
“Taxing unrealized gains gives the government the ability to track your every move.”
BTC supporter Stephen Liver emphasized on social media that “tax on unrealized profits is a legal robbery. They have created this mess and are now trying to pass on the cost to the people. ”
Evolutionary behavioral scientist and well-known author Gad Saad sarcastically remarked:
“We should also be involved in repressive actions against unrealized crimes. You will find a person who looks like it and you will give him a chair as a precaution.”.