David Sacks rejects the proposition of implementing a tax on crypto transactions
White House crypto and AI czar David Sacks dismissed the idea of implementing taxes on each cryptocurrency transaction to fill the US strategic Bitcoin (BTC) reserve and crypto stockpile with digital assets.
During a recent interview on the All In Podcast, host Jason Calacanis suggested imposing a 0.01% tax on all cryptocurrency transactions, denoted in the transferred asset. In response, Sacks stated:
“That’s typically how taxes begin. They are initially portrayed as being insignificant. When the income tax was introduced, it only affected a small number of Americans, with lawmakers assuring that it would never impact middle-class individuals.”
“I am not in favor of new taxes, even if they are guaranteed not to heavily impact people. It appears burdensome to me,” Sacks added.
Crypto investors were heavily critical of the proposition, which would also tax transfers of assets between the same individual’s wallets.
The recent White House Crypto Summit did not mention specific tax policies. Nevertheless, the Trump administration has expressed support for significant tax reforms at the federal level.
David Sacks discusses Bitcoin strategic reserve and crypto stockpile. Source: All-In Podcast
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Trump proposes eliminating income tax and IRS
President Donald Trump previously suggested abolishing the federal income tax and replacing its revenue with tariffs on imported goods.
Trump highlighted that in the 19th century, the US federal government relied solely on tariffs for funding, leading to a period of great prosperity for the country.
Commerce Secretary Howard Lutnick reiterated the proposal, mentioning that the Internal Revenue Service would be substituted by an “External Revenue Service.”
According to research from accounting automation company Dancing Numbers, eliminating federal income taxes as per the Trump administration’s plan could save each American taxpayer at least $134,809.
The company suggested that if state income taxes were also abolished, lifetime savings could amount to up to $325,561 per person.
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