Kamala Harris Capital Gains Tax Proposal Puts Bitcoin and Crypto In Pressure
Last Updated on August 21, 2024 by Michael Motha
Recent reports indicate that Vice President Kamala Harris is backing President Joe Biden’s FY2025 Budget Proposal, which includes a substantial 45% capital gains tax on long-term investments in the U.S. Additionally, she’s weighing the introduction of a 25% tax on unrealized gains. This development has caused significant turbulence in the crypto market, with Bitcoin and altcoins seeing a sharp decline in value over the past few hours.
Will Kamala Harris Trigger a Tax Crisis?
Just one day after Vice President Harris proposed raising the corporate tax rate to 28%, reports indicate her next move could be to impose a 45% tax on long-term capital gains. This would be the highest tax rate proposed by the Democratic Party in over three decades, since 1992. If enacted, it could have serious repercussions for long-term Bitcoin investors and might even push crypto companies to relocate out of the United States in the long run.
Moreover, the proposed 25% tax on unrealized gains could further undermine the holding power of long-term investors. Veterans of the crypto industry and Bitcoin investors are pushing back against what they see as the “crypto reset” claims from Kamala Harris’s team. Bitcoin investor Toby Cunningham has even suggested considering second citizenship outside the U.S.
Despite efforts by pro-Democratic Party figures in the crypto industry to bolster Harris’s reputation with the “Crypto for Harris” campaign, the Vice President appears to be offering no support to the sector.
Ignoring Bitcoin and Crypto
The Democratic National Committee (DNC) recently released its party platform for the 2024 Presidential Elections. Remarkably, the 92-page document did not mention Bitcoin or cryptocurrencies, indicating that these issues are no longer a priority for Kamala Harris.
In contrast, the Republican National Committee (GOP) has explicitly called for ending the crackdown on crypto and supporting innovation in the sector. This difference in stance is reflected in Donald Trump’s renewed lead over Kamala Harris on the Polymarket platform. Harris’s perceived anti-investor and anti-corporate policies may further erode her support.
Attention now turns to the upcoming FOMC meeting and Fed Chair Jerome Powell’s anticipated speech, which is expected to address potential Fed rate cuts in September.
As of press time, Bitcoin has fallen back below $60,000, with altcoins experiencing losses of 3-5% over the past 24 hours.
Michael Motha is the Founder and Managing Director of CryptoNewsOnlineHub and works as a freelance Project Head. He is a dedicated Crypto enthusiast and researcher focusing on blockchain trends, digital assets, and emerging crypto technologies. With academic qualifications in Physics, MBA, and B.Ed from Loyola College, Chennai, he brings clarity to complex crypto topics through insightful content. Outside of crypto, he enjoys blogging, travel, music, and sports such as badminton and tennis.
