Eric Trump’s encryption tax policy: a bold idea or a dream?

Eric Trump, son of President Donald Trump, recently disturbed the idea of ​​”zero encryption policy”. He said that eliminating taxes on encrypted currency gains can encourage innovation, attract investment, and put the United States as a global pioneer in the field of encryption.

While Eric Trump is not a politician himself, his comments are considered a reflection of the interest of the most existing administration in the encrypted currency. Trump also showed support for this industry, as he recently launched the Mimi Special currency and $ Trump, and expressing a more convenient position on encryption.

What is unclear about the proposal?

While the idea of ​​a zero encryption policy seems attractive to many encryption fans, there are still many questions that have not been answered. For beginners, Eric Trump has not provided specific details about how such a policy works. Does all cryptocurrencies apply, or just certain types? Will all of the gains cover short and long -term? Is zero tax applied at the commercial or individual level? How will the government compensate the lost tax revenues?

Another unclear aspect is whether this policy will be part of the wider tax repair plan or an independent initiative. The imposition of coded currency taxes is currently a complex problem in the United States, as the Tax Authority treats encryption as currencies instead of the currency. This means that every time someone sells, trades or spends an encrypted currency, it can be subject to capital profit taxes. The zero encryption tax policy requires a comprehensive reform of this system.

Moreover, it should be noted that Eric Trump is not an elected official, so his comments do not bear the weight of official policy. While his views may affect the Republican Party’s position on encryption, it is unclear how much support the idea will get in Congress.

How possible is this in the near future?

The possibility of a zero encryption policy that is implemented in any time is relatively low. While the idea may resonate with encryption investors, it faces major political and practical challenges.

First, the United States government relies heavily on tax revenue for financing public services. Getting rid of taxes on encrypted currency gains may create a large budget hole. Legionships will need to find a way to compensate for this loss, which may be a difficult sale.

Second, the cryptocurrency industry is still seen by skepticism by many organizers and policy makers. Fears about fraud, money laundering and environmental impact have made some legislators hesitant to adopt encryption policies. Despite the transformation of positions, it may take years before the industry gains enough confidence to justify such a bold tax exemption.

Release responsibility: This publication is media only, and it is not intended as tax advice. For tax advice, please consult a tax specialist.