U.S. President Joe Biden’s upcoming budget proposal has a few surprises for crypto traders and investors, including a proposed doubling of capital gains for certain investors and a crackdown on crypto wash sales. It also includes changes to crypto tax treatment with the aim of raising around $24 billion, according to newsreports. The Biden budget also proposes to nearly double the capital gains tax rate for investors making at least $1 million to pay 39.6% on long-term investments, up from the current 20% tax rate. Biden proposing to double capital gains taxes from 20 to 40% and not allowing for tax loss harvesting on #bitcoin .... WTF... pic.twitter.com/SnJNglpoAA — Lark Davis (@TheCryptoLark) March 9, 2023Update Mar. 9, 4:19 am UTC: Added clarification that the increased capital gains tax rate applies to a certain subset of investors, according to the Bloomberg report.

Source: Wall Street Journal March 09, 2023 04:03 UTC