Will Harris Unleash Tax Terrorism? What Impact Will It Have on BTC?

Author: Bhushan Akolkar, Coingape; Compiler: Baishui, Golden Finance

Summary

• If Kamala Harris wins the upcoming US election, she may launch tax terrorism.

• A 25% tax on unrealized gains could undermine the holding power of long-term Bitcoin investors.

• Massive taxation could drive the cryptocurrency industry out of the United States, providing leverage to other economies.

Latest reports indicate that Kamala Harris is supporting Joe Biden's fiscal 2025 budget proposal, which would impose a capital gains tax of up to 45% on long-term US investments. If that wasn’t enough, she’s also considering a 25% tax on unrealized gains.The news rattled the entire crypto market, with Bitcoin and altcoins falling in the past few hours.

Will Kamala Harris Unleash Tax Terrorism?

A day after Harris proposed raising corporate taxes to 28%, reports surfaced that her next target would be a 45% tax on long-term capital gains. This would be the highest tax rate the Democrats have sought to implement in 30 years, since 1992. If implemented, this could severely hurt long-term Bitcoin investors and could even force cryptocurrency companies to eventually leave the United States.

In addition, an additional 25% on unrealized gains would also hurt long-term investors’ ability to hold on to their holdings. Crypto industry veterans and Bitcoin investors have begun calling Kamala Harris' team's bluff for a "crypto reset." Bitcoin investor Toby Cunningham also supports considering a second citizenship other than the United States.

While Democratic supporters from the crypto industry have been trying to boost Harris's image through the "Harris for Crypto" campaign, she seems unwilling to offer any support for the industry.

Staying Away from Bitcoin and Cryptocurrency

The Democratic National Committee (DNC) launched a plan the day before to release propositions ahead of the 2024 presidential election. Interestingly, the 92-page document does not mention Bitcoin and cryptocurrencies, suggesting that these issues are not important to Harris right now.

On the other hand, the Republican National Committee GOP explicitly mentioned ending the crackdown on cryptocurrencies while supporting innovation in the industry. No wonder Donald Trump is once again ahead of Kamala Harris on the Polymarket platform. These anti-investor and anti-corporate policies of the Harris team may make them lose further.

All eyes will be on the FOMC meeting and the speech of Fed Chairman Jerome Powell, who will most likely be in line with expectations of a September rate cut by the Fed.