New legislation could tax unrealized capital gains. Various Social organizations claim that millionaires pay lower taxes than workers.

Janet Yellen, the US Secretary of the Treasury, expressed her thoughts about the possibility of charging a tax on unrealized capital gains. The tax would go to those users who have not yet materialized gains because the good that produced them has not been sold. This legislation focuses on exceptionally wealthy people in the country.

The proposal had met its introduction to the Senate Finance Committee by its chairman, Ron Wyden, representative of the state of Oregon. According to Yellen, it is a tax that would apply for capital gains that escape regulatory procedures.

Although the official denied that she was talking about a “wealth tax,” she did acknowledge that the measure would apply for very wealthy people who generate income from their investments in asset markets.

In the case of cryptocurrencies, this new tax on unrealized gains could apply in the face of increases in the crypto price. These increases generate more profits for investors, especially for those holders who store amounts for the long term.

In various countries, taxpayers pay taxes on their cryptocurrency operations based on the difference between the purchase price and the sale price.

Cryptocurrencies and American Laws

This new tax could include itself in another that is currently under study in the United States Congress. This tax also closely relates to cryptocurrencies. It is the Infrastructure Law, whose approval might include taxes to various sectors in the cryptocurrency industry, as reported by this media.

The new unrealized income tax law barely enters the Finance Commission, so it still has a long way to go. If that instance passes, it must get voted on by the entire body of the Senate, then by the House of Representatives, and finally, it will have to be regulated by the president.

Social Organizations supported the millionaire tax

When Ron Wyden’s bill went public, 103 national organizations issued a joint statement supporting the initiative. The organizations also demanded its inclusion in the “Build Back Better” plan led by President Joe Biden himself.

This regulation represents a progressive and solid source of financing for the BBB program, which intends to bring more aid to families and communities of workers in response to the difficulties that this sector struggled with during the Covid-19 pandemic.

According to the official White House website, the plan intends to create a healthy space for new jobs, lower taxes and reduce living costs for families from the lowest social classes. To achieve this goal, the richest and the large corporations must play their part.

In this sense, according to the statement, the 400 wealthiest families in the United States of America paid federal taxes with an effective rate near 8% in recent years. In the same period, these families highlighted that their wealth grew a lot so for them, paying lower taxes than teachers or nurses is impossible.

By: Jenson Nuñez

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