Senior U.S. official proposes: allow investors to make tax-free investments in Bitcoin

According to Beincrypto reported on February 16, a senior US President Donald Trump proposed that the new US stimulus package may include tax-exempt investments other than the "401 (k) plan. The proposed tax cuts would appear to have the effect of boosting other investments in the stock market and Bitcoin.

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Larry Kudlow, director of the National Economic Council, said the proposal would allow for the creation of a general savings account that would include pensions, healthcare and education savings in a single account.

The taxpayer can fund the account tax-free and have the opportunity to invest these funds at his choice. In addition, there is no tax on profits that are commonly referred to as “capital gains”.

For households with an annual income of $ 200,000, there can be up to $ 16,000 without taxation. These funds can be invested at the discretion of the owner.

The impact on Bitcoin investment will be very wide-ranging. As long as the funds continue to be invested in the savings account, investors can trade digital currencies such as Bitcoin without paying taxes.

Bitcoin owners have been plagued by issues of ownership tax liability. However, this investment structure will provide a completely tax-free environment for investors interested in participating in digital currencies.

In addition, substantial increases in investment value, such as those already seen in 2019, are still protected from taxation. This will provide additional funding for investment growth.

Although most investors may welcome this proposal very much, it is only a proposal. Any tax cuts or changes must be approved by the U.S. House of Representatives, a difficult task for the Trump administration.

Tax cuts and economic policies were usually proposed during the election year, but were quickly rejected by opposition parties. The Trump administration's proposal to provide tax protection for investments could face the same fate.

Whether approved or not, Trump ’s investment has grown significantly during his administration. As of 2019, the proportion of households investing in the stock market reached a record 55%, the highest number since the Great Depression.