Referring to the capital gains tax proposal, with top earners paying a whopping 43.4%, as well as other political shenanigans, Said IOG CEO Charles Hoskinson:
“There’s a lot of depressing sh * t coming through the tube that really p * ssse me. It’s just an endless river running. Why do we pay taxes when we can print trillions of dollars? “
The news of tax hikes coincided with a severe market correction, with nearly all crypto tokens hit with double-digit losses. Should the proposal pass, Hoskinson said he would see a doubling of his tax liability. But how will he tackle the problem?
Crypto markets dump as tax hike proposal announced
President Biden is considering doubling the capital gains tax for high net worth individuals to pay for social expenses. Those with the highest rate, earning $ 1 million or more, can be hit with a federal tax rate of a whopping 43.4%.
Both traditional and crypto markets collapsed in the news. $ 316 billion was wiped out of the total crypto market, representing a 15% loss.
While the proposal requires Senate approval before passing, Hoskinson has little hope that the situation can be averted. He said this is due to the lack of a majority.
‘No, it will pass. That was because of Georgia, so depressing about it. A divided government is a compromise government, not a monoculture government, and unfortunately, because there is a political monopoly, all of these things will continue. “
How will Hoskinson respond?
In recent times, obtaining dual citizenship, and even renouncing US citizenship altogether, has become a popular way of reducing one’s tax burden.
When this idea was sent to Hoskinson, with Puerto Rico as a possible second residency, he said he had met many people who have done so, especially those associated with the blockchain industry.
However, Hoskinson said he loves Colorado and Wyoming too much to live anywhere else. Instead, his plan to deal with the tax increase is to make more money.
Here’s what I do. I just make more money. I like Colorado. I like Wyoming. Rugged and rugged Wyoming, and warm and sunny Colorado. And this is where I’ll be, and this is where I’ll die. It’s my home. “
Under Law 60 Investor Resident Individual Tax Incentive, there is a 0% capital gains tax when a person qualifies as a bona fide Puerto Rico resident.
To qualify as a Puerto Rico resident, three tests must be passed: attendance, fiscal home base, and closer affiliation, all of which demonstrate an intention to live in the country for a long time. The attendance test has several conditions, including being present in Puerto Rico for 183 days in the tax year.