Former U.S. Representative, Ron Paul, has called for the exemption of all cryptocurrency taxes. The Libertarian is not alone in this notion. In fact, President Donald Trump believes the Federal Reserve is “crazy” for adjusting interest rates and taxing so much. Ron Paul believes the Fed shouldn’t have a Capital Gains Tax for cryptocurrencies or precious metals.
Why the FED Is Crazy, According to Ron Paul (And Trump)
Ron Paul’s main argument for the abolition of Capital Gains Tax on precious metals and alternative currency such as crypto is that they should be decentralized. Furthermore, their prices should not reflect the manipulation of central banks and false market conditions.
Paul discusses the matter in an article entitled, “Trump Is Right, the Fed Is Crazy.” He goes on to state:
“Since the Federal Reserve’s creation in 1913, the dollar has lost most of its value. The steady erosion of the dollar’s value punishes savers and rewards those who seek instant gratification even if it requires piling up massive debts. So the Federal Reserve is at least partially to blame for the rise of a culture that devalues thrift.”
He believes that this sort of manipulation is going to be the cause of the next recession. “The very act of creating money and manipulating interest rates distorts the market.”
To combat crypto taxes and taxes on precious metals, Ron Paul puts forth a plan to pass an “Audit the Fed” bill. The bill would exempt all transactions in the aforementioned alternative currencies from all taxes.
You may not have known that individuals have to pay taxes on their cryptocurrency. Furthermore, you may be wondering how to pay cryptocurrency taxes. Because cryptocurrency is unlike anything else, it can be difficult to understand why it falls under traditional tax methods.
In the United States, the IRS understands digital currency as a property asset rather than a monetary asset. As such, taxes must be paid accordingly. When the property value increases, your crypto is subject to Capital Gains Taxes.
Ron Paul, Trump, and countless other individuals believe this should not be the way crypto taxes work.