THE ELIMINATION OF TAX SUBSIDIES FOR CRYPTO INVESTORS

Biden advocates for the elimination of tax subsidies for crypto investors. This also affected the real estate sector in the oil and gas sectors. We are seeing the essential dept ceiling try to be raised and the Republicans do not want that to happen. Now, we are going to see the Democrats try to lobby for ways to get that accomplished without actually doing so. The simplest way to do that is essential raise the taxes. So, they are going to go after the rich. They are going to go after the ways to recoup the funds where it is not going to hurt the voter that they need.

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The proposed budget will reduce the deficits allegedly by 5.5 trillion dollars and this budget is targeting crypto by eliminating that subsidy for crypto investors better known as the tax loss harvesting strategy. For those who have filed taxes with crypto in the US as they are supposed to, this is giving them the ability to sell any crypto during the tax year end and take a loss to reduce their tax burden. They can buy back that crypto the next day and start a fresh cost basis. That is a loophole and you can imagine that doesn't make a difference in the lives of the day-to-day retail investors.

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Think about the millions of dollars traditional whales, and how important tax loss harvesting is for that crypto investor. That is something that will be shut down as soon as it gets on paper. That is not going to, especially if they look to consider crypto as a security. No way can alleviate tax loss harvesting and still deem it as a security. The loophole is going to be shut and that is just something that is just not going to make it off of the paper. It is going to discourage a lot of investors and digital assets would be in a very more volatile state because you have no protection as an investor and it kind of put you in a horrible spot as an investor. It is going to have a direct effect on Bitcoin as you can see when Bitcoin was trading down 5% after the news broke. That is what is going in because everybody that is involved in crypto knows the chain reaction that would occur from the larger dollar players in crypto.

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