Thomas Daniels
Significant changes to taxation, cryptocurrency regulation, and administrative procedures are being actively considered by the Trump administration. To strengthen the U.S. strategic Bitcoin (BTC) reserve and digital asset stockpile, White House crypto and AI czar David Sacks has rejected the notion of taxing individual cryptocurrency transactions.
Jason Calacanis, presenter of the All In Podcast, proposed a 0.01% tax on all bitcoin transactions on a recent episode. The tax would be expressed in the value of the asset being sold, purchased, or transferred. Sacks was adamantly against the plan, saying:
“That’s always how taxes start. They are described as being very modest. You know, when the income tax started, it only applied to like a thousand Americans, and the legislators swore up and down that it would never be applied to middle-class people.”
Sacks underlined his disgust even more by saying:
“I don’t particularly like the idea of new taxes, even if it is promised that they won’t affect people very much. That sounds burdensome to me.”
Many cryptocurrency investors agreed with his position and vehemently opposed the plan, especially since it would allow transfers across wallets that belong to the same person.
The Position of the Trump Administration on Tax Reform
The latest White House Crypto Summit did not establish any specific tax policy, despite debates about crypto taxation. The Trump administration has, meanwhile, made it clear that it supports federal tax reform more broadly.
In the past, President Donald Trump has suggested doing away with the federal income tax, arguing that taxes on imported goods might make up the difference. He brought up the American economic model of the 19th century, which was largely financed by tariffs and had rapid economic expansion.
This view was shared by Commerce Secretary Howard Lutnick, who proposed replacing the Internal Revenue Service (IRS) with a tariff-collecting “External Revenue Service.”
American taxpayers may save a lot of money as a result of the planned tax reform by the Trump administration, per research by the accounting automation company Dancing Numbers. According to the report, removing the federal income tax would save every taxpayer at least $134,809, and if state income taxes were also eliminated, the potential lifetime savings might reach $325,561.
