Key Takeaways
- Biden's 2025 budget includes a crypto mining tax and wash sale rule for digital assets.
- The proposed taxes are projected to generate $10 billion in 2025 and over $42 billion in the next decade.
- The budget aims to close tax loopholes benefiting the wealthy, including those related to crypto.
U.S. President Joe Biden has unveiled his proposed 2025 budget.
It includes a crypto mining excise tax and applying wash sale rules to digital assets. These measures are similar to those proposed last year but were not adopted by Congress.
Projected revenue from crypto taxes
The administration estimates that these taxes could generate nearly $10 billion in 2025.
Over the next decade, they could bring in more than $42 billion. The budget aims to close tax loopholes that benefit the wealthy, including those related to crypto.
Details of the proposed taxes
The budget proposes modernizing tax code’s anti-abuse rules to apply to crypto assets.
This includes eliminating the ability for crypto investors to sell at a loss and quickly rebuy, reducing their tax burden.
The proposed excise tax on mining is expected to reduce the national deficit by $7 billion over the next decade.
