Kamala Harris’s 45% Tax Plan Prompts Fears of Crypto Exodus From U.S.

The latest reports in the town suggest that Vice President Kamala Harris is endorsing Joe Biden’s FY2025 Budget Proposal of introducing a staggering 45% capital gains tax on long-term investments in the U.S. If this weren’t enough, she’s also considering bringing a 25% tax on unrealized gains. This news has sent jitters across the crypto market with Bitcoin and altcoins turning red in the past few hours.

Will Kamala Harris Unleash Tax Terrorism?

The day after Vice President Harris proposed to increase the corporate tax to 28%, reports suggest that her next target would be the 45% long-term capital gains tax. This would be the highest tax that the Democratic Party seeks to implement in three decades since 1992. If implemented this could seriously hurt the long-term Bitcoin investors and might even force crypto companies to eventually move out of the United States in the long-term.

Besides, an additional 25% on the unrealized gains will also hurt the holding power of long-term investors. Crypto industry veterans and Bitcoin investors have started calling out the “crypto reset” bluff by the Kamala Harris team. Bitcoin investor Toby Cunningham also endorsed to consider a second citizenship apart from the US.

45% CAPITAL GAINS TAX

Kamala Harris proposes 45% long-term capital gains tax – the HIGHEST since 1922.

THIS is just one reason out of 1000 to get a second citizenship before anything else this bull market. This government is out of control and WILL get much worse.

— Toby Cunningham (@sircryptotips) August 20, 2024

While the supporters of the Democratic Party from the crypto industry have been trying to prop up Harris’s image with the “Crypto for Harris” campaign, the Vice President seems unwilling to give any support to the industry.

Shunning Bitcoin and Crypto

The Democratic National Committee (DNC) kickstarted a day before while releasing the party ideals ahead of the 2024 Presidential Elections. Interestingly, the 92-page document had no mention of Bitcoin and crypto, showing that these matters are now unimportant for Harris.

On the other hand, the Republican Nations Committee GOP has clearly mentioned ending the crackdown on crypto while supporting innovation in this industry. No wonder Donald Trump has once again gained a lead over Kamala Harris on the Polymarket platform. These anti-investor and anti-corporate policies of the Harris team might cause them to lose ground further.

Moreover, with the Robert F. Kennedy Jr campaign has weighed its decision to continue with the US election bid or step down to endorse Donald Trump. This report according to CoinGape may push the Trump campaign ahead of the Harris and Tim Walz democratic ticket.

All eyes will be on the FOMC meeting and the Fed Chair Jerome Powell’s speech likely to be on the expected lines of the Fed rate cuts in September.

The Bitcoin price has once again cracked under $60,000 as of press time with altcoins seeing losses between 3-5% in the last 24 hours. However, at press time, BTC was exchanging hands at $59,650 a 1.31% surge from the support level.