Trump Proposes Tax Elimination of Crypto Profits
US President-elect Donald Trump has proposed significant changes in the taxation of crypto assets, one of which is to eliminate the profit tax on digital asset transactions.
This plan means that profits from holding digital assets such as Bitcoin (BTC), Cardano (ADA), Algorand (ALGO), Ripple (XRP), and Hedera (HBAR) could be tax-free for US investors.
Trump's proposal reflects a growing trend among political leaders to actively engage with the crypto sector. Along with the increasing awareness of the potential and economic benefits that will occur in the global financial system.
Currently, crypto is still categorized as an asset that is subject to income tax and value-added tax (VAT). The tax imposed can vary from 10% - 37% per year. If it is true that it will be eliminated, then there is a large market potential to enter this industry.
This is because profits obtained from crypto will not be taxed and will indirectly increase the number of investors.
Although this proposal aims to stimulate growth in the crypto sector, it raises concerns about its impact on public funding. Because capital gains taxes contribute significantly to federal revenue.
