U.S. Senior Official’s Proposal Might Allow Tax-free Bitcoin Investments

Parth Vig
Parth Vig is a Management student, and a keen observer of Cryptocurrency and blockchain technology, his interest in writing brings him to thecoinrepublic.com, He believes that he has many ideas that he pens down and he feels it would be a great asset for any kind of creative writing.
  • Per Beincrypto, this new proposal by government officials is likely to allow tax-free investments in bitcoin.
  • The holder of bitcoin or any other cryptocurrency always haunted by uncertainty over the tax liability in ownership.
  • Trump’s administration has witnessed substantial growth in the amount of investment.

The United States, in a recent bid, to encourage U.S. citizens to invest in stock and alternative markets, proposed tax cuts, which is likely to bolster investments as reported by CNBC.

The New tax cuts and relaxation policy often proposed before or during elections, which always subject to a major backlash from the opposing parties, and this new proposal of tax cuts by Trump’s party might fall prey to election politics.

According to the proposal, many new tax cuts will be taken under consideration; a portion of Income of households will be considered tax-free for investing purposes outside 401(k). A household earning up to $200k can invest a sum of $10k on a tax-free basis, though these figures are fluid as reported by officials.

According to an economist at the conservative Heritage Foundation and close confidante of the White House, Stephen Moore, if the tax relaxation imposed, it would present a substantial sum of money for people.

“Nothing’s ruled out, Nothing’s been ruled in, either.” As quoted by one senior official.

New Tax Cuts Proposal to Bolster Investments in Bitcoin

Per Beincrypto, this new proposal by government officials is likely to allow tax-free investments in bitcoin. Bitcoin Investment implications are widespread, and it could be traded without any tax liability as funds are invested in a savings account structure.

The holder of bitcoin or any other cryptocurrency always haunted with uncertainty over the tax liability in ownership, though the proposed tax cuts would provide a tax-free investment environment to those who are interested in digital currency investments.

Just a Proposal yet

The proposal by U.S. officials might be good news for many investors, but as of now, this is just a proposal, its not a law. The tax cuts or proposed changes in the taxation policy are subject to approval by the U.S. House of Representatives or from official orders from the Trump administration.

Trump’s administration has witnessed substantial growth in the amount of investment. It has been recorded that around 55% of U.S. households have actively made their investment in the stock market during the fiscal year 2019, as surprisingly, this is the highest number after the great depression or recession.

Though it is yet uncertain that this New policy will be imposed or not, but if imposed, it will likely give a sharp push to the markets, whether its stock or crypto.

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