WILL CONGRESS TAX CRYPTO
Will congress tax crypto. With the large stimulus proposals passed by both the Trump and Biden administration’s, its apparent that the deficit has grown enormously during the Covid health crisis. Even though this is a once in a century event, and usually government intervention is needed for such things, economists have put out warnings about growing the deficit much larger than the current amount. That is one reason President Biden has been adamant that his proposals be paid for by taxing the rich and corporate America. Looking for other avenues of tax revenue is something that Congress has also been paying attention to, and with the sudden rise in cyrpto currency markets, and that fact that they are not taxed, the conditions are set for a reckoning with respect to the taxation of the crypto market. Those who have warned that that market is in a bubble, have also warned that is may pop once the tax man comes calling. Will congress tax crypto.
Digital, decentralized cryptocurrencies such as Bitcoin have provided millions with private, fun, and often lucrative, next generation forms of currency and speculative assets. Cyrptocurrency has accomplished this all through a system the government, and no central authority, can control. So, naturally, paternalistic big government politicians want to rain on the parade, as some would say. But others would simply say, that every asset class to some degree is taxed, and given that we have a crisis in the world due to the Covid health pandemic, and a need to rebuild a shattered third world economy, the need for money is great, and taxing an asset class that has prospered thus far only seems fair.
Of course to those who own the asset, is will seem unfair, and to those who oppose government in any form, the same. but to those pragmatist who understand the need for a worldwide pandemic vaccine effort, and the need to rebuild the third world shattered economy, taxing an untaxed asset class makes common sense.