Follow-up question on the capital gains tax: if stock markets drop because people are locking in current profits by selling stock, does that mean they have to pay taxes now? Which would mean the US government potentially gained billions of tax just because Biden made an announcement?
I'm still flabbergasted by the idea that Americans can choose when they want to pay their taxes.
In the UK, we pay 20% on CGT but that’s only on profits. We don’t have an annual wealth tax so it’s only payable when we decide to sell. There was a review on spending/finances a couple of months back but luckily CGT was left alone.
Well, it's always on "profits" (appreciated value), correct? For example if you buy 1btc at $60 and sell it at $60,000 your CG taxes are computed based on $59,940 and NOT $60,000.
I think this is just more weak hands panic. Fortunately one can profit off the stupidity of others and each time it happens there are fewer dingalings holding bitcoins.