Matthew Walrath noted that the tax reform widely cited on US social networks, which involves introducing a capital gains tax at a rate of 44.6% and a tax on unrealized profits of 25%, is essentially just a populist trick by the current administration before the elections , since it will only affect the income of people earning more than $1 million a year.
“It's basically just a proposal that says they want to raise the long-term capital gains tax rate for people making more than $1 million a year to 44.6%. If the budget proposal is adopted, those with truly high incomes could potentially face new difficulties. But for the most part, it is unlikely that this will have any impact on the average crypto investor,” Walrath commented.
He added, citing data from crypto payment company TripleA, that the annual income of the average crypto investor in the world is only about $25,000.
The Internal Revenue Service (IRS) previously released a draft of a new Form 1099-DA tax return for reporting income from digital asset brokerage transactions. The 1099-DA will be the first tax form specifically designed to collect identification and transaction details from brokers.
Source: Bits
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