by Michaelson Williams, TSX | The MichaelsonEffect
The 47th President of the United States, Donald J. Trump, is reportedly planning to eliminate capital gains tax on cryptocurrencies in the U.S. — at least, that’s the buzz around the crypto community. If this proposal becomes a reality, it could have a massive impact on a variety of crypto platforms, such as Tangled Social, OnTheNode, and others. This move would be especially exciting for current and future crypto holders. After all, the American people are taxed heavily and often, sometimes to the point of financial struggle. Given that cryptocurrency and digital payments are rapidly becoming the norm, the ability to invest, make everyday purchases, and plan for future generations without facing crippling taxes would be a game-changer for many.
Crypto platforms like Tangled Social, and article submission platforms like OnTheNode, both powered by Millix cryptocurrency, are ahead of the curve. Having been around long enough to make a meaningful impact, these platforms stand to benefit significantly if Trump’s proposal goes forward. Under this new plan, users of Tangled would be able to use Millix without worrying about capital gains tax. Since Millix is already used globally, this would reassure users that no matter where they are in the world, their money truly belongs to them and not the government. But Millix is not the only cryptocurrency that would fall under the new proposal. Other digital assets, such as Cardano (ADA), Algorand (ALGO), Ripple (XRP), and even newer ones like GoVoteX (GVX), could also become tax-free for American crypto holders.
Capital gains tax is a tax on the profit made from the sale of an asset, such as cryptocurrency, stocks, real estate, or other investments. When you sell an asset for more than you paid for it, the difference is considered a “capital gain” and may be subject to taxation.
There are two main types of capital gains:
Short-term capital gains: These apply if you sell an asset you’ve held for one year or less. Based on Trump’s proposal, it could be assumed that if you do not hold your crypto investment for at least one year, you’ll still be responsible for paying capital gains tax. Short-term gains are typically taxed at your ordinary income tax rate, which is often higher than the rate for long-term gains.
Long-term capital gains: These apply if you sell an asset you’ve held for more than one year. Long-term gains are typically taxed at a lower rate. In the U.S., the tax rate on long-term capital gains ranges from 15% to 37%, depending on your income level. This can represent a significant hit to crypto investors’ bottom lines, especially those holding large amounts of digital assets.
Continue Reading…> Here
