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December 5, 2022
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Only 0.3% of taxpayers will lose due to the new tax system, believes the Biden administration –

A senior anonymous official from the Joe Biden administration says only 0.3% of US taxpayers may be affected by the higher taxes that the White House plans to introduce.

Only 0.3% of taxpayers will lose due to tax changes

Recently, it became known that the White House, which already houses Joe Biden, wants to raise the tax threshold for the highest earners. This would be a blow to stock investors.

There is growing evidence that in recent years, in fact, much of the gains at the top of the U.S. social ladder have been generated not by labor, but by “So-called market rates of return, rents, etc.”, says an anonymous White House official who spoke to Financial Times. In his opinion “Taxing people who do exceptionally well in the economy”is something good.

Under Biden’s plan, the capital gains tax rate for affluent individuals will increase to 39.6% from the current base rate of 20%. For those earning $ 1 million or more per year, the new highest rate will be accompanied by a so-called a top-up tax, which will increase the US capital gains and dividend tax rates to 43.4%.

A Biden administration official noted that the new plan was in line with what the current US president preached during the election campaign.

Criticism of Biden’s plans

Some investors, including billionaire Tim Draper, have criticized the new tax plan. Draper, a well-known supporter of cryptocurrencies, argued that a capital gains tax of 43.4% “Can kill the golden goose that is America”, and California taxes can be as high as 56.4%, which is “Death for [zjawiska] job creation “.

According to the investor, Bitcoin has the potential to become a haven for concerned investors.

The antidote to oppressive government and taxes is … Bitcoin Draper said.

Graham Newhall, a communications advisor at the Blockchain Association, told Cointelegraph that the organization supports the idea that a 28% rate would be optimal for the market.

– On the other hand, the cryptocurrency market is full of hodlers and these people already have a very long term prospect of investing in cryptocurrencies so they may not be willing to sell – added.

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