Recent developments have raised concerns among Bitcoin investors. Vice President Kamala Harris supports a 25% tax on unrealized capital gains and a proposed 45% tax on long-term investments, which could significantly impact Bitcoin investors.
Proposed Tax Increases
Harris endorsed President Joe Biden’s FY2025 Budget Proposal, which includes a 45% capital gains tax on long-term investments—the highest proposed by the Democratic Party since 1992. She also considered a 25% tax on unrealized gains. This news caused Bitcoin and altcoins to decline.
Impact on Bitcoin and the Crypto Industry
The 45% long-term capital gains tax and the 25% unrealized gains tax could harm Bitcoin investors and drive crypto companies to relocate outside the U.S. Bitcoin investors, like Toby Cunningham, are even considering obtaining second citizenships.
Despite attempts by Democratic Party supporters to enhance Harris’s image, her stance appears indifferent to the crypto industry. The Democratic National Committee’s (DNC) recent document outlining party ideals for the 2024 Presidential Elections did not mention Bitcoin or crypto.
Contrast with Republican Stance
The Republican National Committee (GOP) has supported ending the crackdown on crypto and fostering industry innovation. This stance has contributed to Donald Trump gaining an edge over Harris in polls.
Market Reactions and Upcoming Events
Bitcoin(https://markets.coinpedia.org/bitcoin/)fell below $60,000, and altcoins lost 3-5% in the past 24 hours. Attention is now on the Federal Open Market Committee (FOMC) meeting and Fed Chair Jerome Powell’s upcoming speech, which may address potential Fed rate cuts in September.
