Will USA Lower Crypto Tax? Trump Vows 20% Corporate Tax Cut!
Former President Donald Trump visited Capitol Hill on Thursday, marking his first return since the January 6, 2021, violence. He met with congressional Republicans, using the opportunity to discuss his potential future policies and gather support.
Promise to Cut Corporate Taxes
Later that day, Trump attended a Business Roundtable event with top CEOs. He promised to reduce the corporate tax rate to 20% if re-elected. This follows the 2017 Republican tax cuts during his first term, which reduced the corporate tax rate from 35% to 21%.
While the corporate tax cuts were made permanent, individual tax cuts are set to expire after 2025. Republicans are keen on renewing these expiring cuts and see a potential second Trump term as a chance to lower taxes further.
Further Tax Reductions
At the private event, Trump reiterated his commitment to making the 2017 tax cuts permanent and proposed further trimming the corporate tax rate to 20%. He described this as a “nice, round number,” highlighting that even a small reduction would save profitable US companies billions of dollars annually.
Regulation Cuts
Trump also promised to slash regulations if he returns to the presidency, aligning with his broader goal of reducing government intervention in business.
Discussions with Republican Lawmakers
Trump’s visit to Capitol Hill also included discussions with Republican lawmakers. These talks were expected to focus on Trump’s 2025 policy agenda, including taxes and entitlements. However, they largely centered on Trump’s grievances and support from GOP members.
Current Crypto Tax Rates in the USA
Short-term Capital Gains
In the US, short-term capital gains from cryptocurrencies held for less than a year are taxed as regular income. The rates range from 10% to 37%, depending on the taxpayer’s income and tax bracket.
Long-term Capital Gains
For cryptocurrencies held for more than a year, long-term capital gains tax rates apply. These rates range from 0% to 20%.
Tax Classification
The IRS treats cryptocurrencies as property, so the tax rates for crypto align with those for stocks and other assets. The specific rate depends on the duration the asset was held and the taxpayer’s total income, ranging from 0% to 37%.
Income from Crypto Activities
Income earned through mining, staking, lending, or receiving crypto as payment for goods or services is considered ordinary income. This income is taxed at rates corresponding to the individual’s gross income, ranging from 10% to 37%.
Former President Donald Trump’s recent visit to Capitol Hill and meetings with CEOs underline his commitment to further tax cuts and deregulation if re-elected. His promise to reduce the corporate tax rate to 20% and make the 2017 tax cuts permanent highlights his focus on fostering a business-friendly environment. Meanwhile, the current US crypto tax rates, ranging from 0% to 37% based on holding period and income, reflect the IRS’s classification of cryptocurrencies as property. As the political landscape evolves, these tax policies and their implications will remain key areas of interest for businesses and individual taxpayers.
