💥Musk Criticizes U.S. Tax Law: Earn $40,000 from Crypto Trading but Pay $130,000 in Taxes🙉🙉🙉

Musk posted on his social media platform: "A customer purchased $7,000 worth of cumrocket and staked it for 3 months to earn a 6900% return. Then they sold and withdrew profits to invest in NFTitties, but the developers rug-pulled the project, and they only managed to liquidate 10% of the funds. Can the customer deduct the gas fees for minting to balance the short-term capital gains tax?" Earn $40,000 from crypto trading but pay $130,000 in taxes.

Crypto Tax Disputes: Inextricable and Chaotic

Why has Musk held a long-standing dissatisfaction with U.S. crypto taxes? FinTax tax advisors analyze two primary reasons:

1. U.S. tax laws are inherently complex, with each region having its own regulations, and compliance costs are high, almost reaching 10 times that of China;

2. Starting in 2023, the U.S. has introduced targeted tax legislation for the crypto space, but it has not incorporated the characteristics of the crypto industry and still approaches it from a traditional industry perspective, which may be inherently unreasonable from a legal standpoint; even if the legal reasoning itself is sound, the government's complete reliance on traditional tax administration methods to manage crypto businesses makes it very difficult for companies to truly comply.

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