David Sacks Pushes Back on Crypto Transaction Tax Proposal
White House cryptocurrency and AI czar David Sacks has pushed back against a suggested 0.01% tax on cryptocurrency transactions as a potential overreach. The suggestion, put forth by All In Podcast host Jason Calacanis, suggested taxing all transfers, buys, and sells of digital assets.
“Taxes always start in that manner. They are explained as being enormously modest,” said Sacks, citing historical precedence. Sacks warned against newly proposed taxes, even the first modest ones, stating they develop a life of their own.
Crypto traders largely denounced the proposal, noting fears regarding taxing transfers from one private wallet to another and putting more burden on the sector. Although the matter was discussed, the latest White House Crypto Summit did not make any official crypto tax announcements.
Trump’s Larger Tax Reform Plans
President Donald Trump called for comprehensive tax reform, including ending the federal income tax and replacing it with taxes on goods imported into the country. He spoke of the 19th century when tariffs funded the U.S. government, arguing it led to strong economic growth.
Commerce Secretary Howard Lutnick repeated Trump’s proposal, calling for the IRS to be replaced by an “External Revenue Service.” Based on a study by Dancing Numbers, substituting federal income taxes with tariffs would save every taxpayer at least $134,809 over their lifetime, with potential savings of up to $325,561 if state taxes are also eliminated.
While tax discussions continue, the issue of regulating cryptocurrencies remains contentious. The Trump administration expressed general support for tax reform but has not officially endorsed any tax plans regarding cryptocurrency.
