According to Cointelegraph, White House crypto and AI czar David Sacks has dismissed the notion of imposing taxes on each cryptocurrency transaction as a means to bolster the U.S. strategic Bitcoin reserve and digital asset stockpile. During a recent appearance on the All In podcast, host Jason Calacanis suggested a 0.01% tax on every cryptocurrency transaction, which would be denominated in the asset being transferred, bought, or sold. Sacks responded by expressing skepticism, noting that taxes often start modestly but can expand over time. He referenced the history of income tax in the United States, which initially applied to a small number of Americans but eventually broadened its reach. Sacks expressed concerns about the potential burden of new taxes, even if they are initially promised to have minimal impact. The proposal faced criticism from crypto investors, particularly due to the inclusion of taxes on transfers between wallets owned by the same individual.
The recent White House Crypto Summit did not address specific tax policies, although the Trump administration has indicated support for comprehensive federal tax reform. U.S. President Donald Trump has previously proposed eliminating the federal income tax, suggesting that revenue could instead be generated through tariffs on imported goods. Trump pointed to the 19th century, when the U.S. government was funded solely by tariffs, as a period of significant prosperity. Howard Lutnick, the U.S. Commerce Secretary, echoed this proposal, suggesting the replacement of the Internal Revenue Service (IRS) with an 'External Revenue Service.' Research from accounting automation company Dancing Numbers indicates that the Trump administration's plan could potentially save each American taxpayer at least $134,809, with lifetime savings reaching up to $325,561 if state-income taxes are also repealed.
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