David Sacks Rejects Crypto Transaction Tax Proposal for U.S. Bitcoin Reserve
David Sacks, the White House's crypto and AI advisor, recently dismissed the idea of imposing a tax on each cryptocurrency transaction to fund the U.S. Bitcoin reserve and crypto stockpile.
During a conversation on the All In Podcast, Sacks responded to a suggestion by host Jason Calacanis, who proposed a 0.01% tax on every crypto transaction, whether it’s buying, selling, or transferring assets. Sacks expressed his concern, recalling how small taxes often grow over time, citing the example of income tax, which initially applied to just a small group of people but eventually expanded to the broader population.
Sacks further noted that he wasn’t in favor of new taxes, even if they were marketed as minimal, describing the idea as burdensome. The proposal was met with backlash from crypto investors, especially since it would also impose taxes on transfers between wallets owned by the same individual.
READ MORE: Trump Vows to Make America the Bitcoin Superpower, Ends Crypto Crackdown
While no specific tax measures were discussed at the recent White House Crypto Summit, the Trump administration has shown interest in tax reform at the federal level. Notably, former President Donald Trump proposed a drastic overhaul of the tax system, suggesting the elimination of the federal income tax in favor of tariffs on imported goods. Trump argued that this approach worked successfully in the 19th century and led to a period of significant prosperity.
Commerce Secretary Howard Lutnick echoed Trump’s proposal, suggesting the creation of an “External Revenue Service” to replace the IRS. According to research by Dancing Numbers, implementing this tax reform could lead to substantial savings for U.S. taxpayers, with individual savings potentially reaching up to $325,561 if state income taxes were also abolished.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
