Biden's Proposed Budget Includes Crypto Mining Tax and Wash-Sale Rules

According to CoinDesk, U.S. President Joe Biden has unveiled his proposed fiscal year 2025 budget, which includes a crypto mining excise tax and addressing crypto in wash-sale rules. These taxes are similar to those proposed last year, which were not taken up by Congress. The administration suggests that these taxes could generate nearly $10 billion in 2025 and over $42 billion in the next decade. The president's proposed budget includes line items for applying wash sale rules to digital assets, information reporting requirements for financial institutions and digital asset brokers, foreign crypto account reporting rules, including crypto in mark-to-market rules, and an excise tax on mining. The budget aims to close tax loopholes that benefit the rich and large corporations, such as the 'like-kind exchange loophole' for real estate investors and tax breaks for corporate jets. Wash trading rules in traditional markets aim to stop people from selling an investment for a loss and then quickly rebuying it. This practice has been prevalent in the non-fungible token (NFT) markets in the crypto industry. The administration projects that including digital asset transactions in wash sale rules could generate over $1 billion in the 2025 fiscal year and over $8 billion by including cryptocurrencies in mark-to-market rules. Over a 10-year period, these two rules could generate $25 billion and $7.3 billion, respectively. An excise tax on mining could remove some $7 billion from the national deficit over the next decade. This is not the first time the Biden administration has sought to impose a mining excise tax or close the wash sales trading loophole. Last year's budget proposal included similar provisions, but those proposed taxes were not taken up by Congress in drafting budget bills. Biden's unveiling of his budget proposal comes days after his State of the Union address, though he did not mention digital assets in his speech.

查看原始新闻