Regarding the capital gains tax proposal, where top earners pay up to 43.4%, and other policy measures ShenanigansCharles Hoskinson, CEO of IOG said:
“A lot of depressing shit doesn’t come down the pipe, which really puts me off. It’s just an endless river. Why do we pay taxes when we can print trillions of dollars? “
The tax hike news coincided with a sharp market correction with almost all crypto tokens showing double-digit losses. If the proposal is passed, Hoskinson said he would see a two-fold increase in his tax liability. But how does he intend to deal with the problem?
Crypto Markets Dump announced as tax hike proposal
President Biden is considering doubling capital gains tax for high net worth individuals to pay for welfare expenses. Those with the highest tax rate who earn $ 1 million or more could be affected by a federal tax rate of up to 43.4%.
Both the traditional and crypto markets collapsed on the news. $ 316 billion was wiped out of total crypto market cap, a 15% loss.
Although the proposal will require Senate approval before it can be passed, Hoskinson has little hope that the situation can be averted. He said this was due to the lack of a majority.
“No, it will pass. That was the Georgia episode, so depressing about it. A divided government is a government of compromise, not a government of monoculture, and unfortunately all of these things will happen because there is a political monopoly. “
How will Hoskinson react?
Recently, the practice of obtaining dual citizenship and even foregoing US citizenship altogether has become a popular way to reduce the tax burden.
When this idea was brought to Hoskinson, with Puerto Rico as a possible second home, he said he met many people who did this, especially those associated with the blockchain industry.
However, Hoskinson said he loved Colorado and Wyoming too much to get up and live anywhere else. Instead, his plan to deal with the tax hike is to make more money.
“Here’s what I do. I just make more money. I love Colorado. I love Wyoming. Rough and rough Wyoming and warm and sunny Colorado. And this is where I will be and this is where I will die. It is my home.”
Under Act 60 Investor Resident Individual Tax Incentive, there is a 0% capital gains tax when an individual qualifies as a bona fide Puerto Rico resident.
To qualify as a Puerto Rican resident, you must pass three tests: Presence, Tax Home, and Closer Association. All of this shows the intention to live in the country for the long term. The attendance test has several conditions, including attendance in Puerto Rico for 183 days in the tax year.