White House Rejects Cryptocurrency Transaction Tax Proposal

According to Cointelegraph, White House crypto and AI czar David Sacks has dismissed the idea of taxing every cryptocurrency transaction to fund a U.S. strategic Bitcoin reserve and digital asset stockpile. The proposal was raised during a recent episode of the All In podcast, where host Jason Calacanis suggested a 0.01% tax on all crypto transactions, denominated in the asset being transferred, bought, or sold.

Sacks pushed back on the idea, warning that taxes often start small but tend to expand over time. He cited the history of income tax in the United States, which initially applied to a limited group of Americans but gradually expanded its reach. Sacks expressed concerns about the potential burden of new taxes, particularly those imposed on transfers between wallets owned by the same individual, a key point of criticism from crypto investors.

The recent White House Crypto Summit did not specifically address tax policies, though the Trump administration has advocated for broad federal tax reform. President Donald Trump has proposed eliminating the federal income tax altogether, suggesting that government revenue could instead come from tariffs on imported goods. He pointed to the 19th century, when tariffs were the primary source of U.S. government funding, as an era of economic strength.

Howard Lutnick, the U.S. Commerce Secretary, has backed this idea, proposing the replacement of the IRS with an "External Revenue Service." Research from accounting automation firm Dancing Numbers suggests that Trump’s plan could save the average American taxpayer at least $134,809, with lifetime savings reaching up to $325,561 if state income taxes were also abolished.