• Biden’s new budget plan will almost double the capital gain rate.
• The proposals also include changing crypto tax treatment to raise around $24 billion.
• The US president also proposes a 5.2% raise for federal employees.

US President Joe Biden’s Budget proposal has some surprises for crypto traders and investors, including doubling capital gains for some investors and prohibiting the sale of crypto washes.

The President of the United States presents plans to raise business taxes and reduce wasteful spending.

As officials at the White House reported, President Biden’s budget blueprint would save hundreds of billions of dollars by reducing drug prices, raising some business taxes, cracking down on fraud and slashing spending. 

Biden’s Budget plan for 2024

The Biden administration had announced its financial 2024 budget plan on Thursday, March 9,which reportedly aims to reduce the debt by nearly $3 trillion over the next ten years. The report also includes a change in crypto tax treatment to raise around $24 billion.

As reported, the document is expected to lay out the president’s preference for the next two years and highlight possible themes of his possible re-election campaign. White House officials said the budget would exclude large corporations, including the oil industry and pharmaceutical companies.

White House officials have reported that “the budget will outline a plan that would require insurance companies that run Medicaid managed care programs to pay Medicaid if the companies charge more than the cost of patient care.”

According to the White House, imposing new regulations on the pharmaceutical industry would save more than $200 billion over a decade from a range of new drug-related proposals. The budget plan would allow Medicare to negotiate prices for more drugs and bring them into talks soon after launch.

As per Bloomberg, President Biden’s proposal would require that the richest 0.01% of Americans pay at least a 25% tax rate. It would raise the top tax rate for Americans, making less than $400,000 from 37% to 39.6%, reversing one of Trump’s tax cuts — though tax rates for those making less than that amount would remain untouched. Accordingly, there are plans to raise income taxes on corporations and wealthy Americans.

This type of strategy is not permitted when stocks and bonds are involved – under current wash sale regulations – however, crypto is not currently under these regulations as digital assets are not classified as securities. However, it seems like the US government is looking to change that.

From crypto tax software company Koinly, Danny Talwar said, “This is an inevitable consideration for the US which, if implemented, will see it on par with other jurisdictions such as Canada and Australia, where crypto wash sales apply.”

The budget will also propose expanding the Federal Communications Commission’s authority to auction radio spectrum, a move the White House estimates will save $50 billion. 

The president also plans to propose a 5.2% raise for federal employees, people familiar with the matter said, the biggest increase in the last 10 years