THE GUARDIAN: Cryptocurrency falls below $50,000 as White House looks to bring levy on investment gains into line with income taxes
Speculators in Bitcoin have been left nursing heavy losses after reports Joe Biden is planning to raise taxes on the wealthiest Americans to tackle inequality and finance trillions of dollars in higher social spending.
The cryptocurrency price fell more than 6% to below $50,000 (£36,000) a bitcoin, hitting the lowest level since early March, as the White House puts the finishing touches on plans to almost double the rate of capital gains tax for rich individuals.
For those earning $1m or more, the tax on investment income would rise to 39.6%, up from a current rate of 20%, as part of plans expected to be announced next week. A 3.8% tax on investment income used to fund Obamacare would also be kept in place, meaning the new top rate would be as high as 43.4%.
Biden is also preparing to raise the top marginal income tax rate to 39.6% from 37%, according to reports by the New York Times and Bloomberg News, bringing the levy on investment gains into line with taxes on income.
The UK government was urged to bring taxes on investment into line with rates applied on income by the Office of Tax Simplification last year.
The Biden administration is planning a sweeping overhaul of the US tax system designed to make wealthier individuals and big companies pay more in tax, tackling inequality and helping to foot the bill for the president’s economic agenda. » | Richard Partington | Friday, April 23, 2021
