In the near future, it may cost you 0.2% tax just to transfer crypto assets from one wallet to another. This is what the New York Assembly Bill 8966 is trying to do.
This is not a tax on gains, realized or not, this is a tax on all crypto activity, even simple transfers.
You can thank Assemblyman Phil Steck for this dumb ass attempt to steal even more from Americans using crypto. The goal is to generate revenue from the "rapidly expanding digital assets market".
New York already has some of the worst regulations when it comes to crypto and is why many exchanges will not do business in New York. This would be massive L for crypto further harming American citizens legitimately using crypto currencies.
While 0.2% doesn't seem like much, this is not an additional tax on gains, this is a tax on all asset movements. You send 1M tokens to Kraken to sell, you would just have incurred a 0.2% tax.
Lawmakers in New York are seeking new methods to tax and regulate the rapidly growing cryptocurrency space. Assemblymember Phil Steck has introduced Assembly Bill 8966, which would add a 0.2% excise tax to transactions involving digital assets, such as the sale and transfer of cryptocurrencies and non-fungible tokens (NFTs).
The state wants to pay for essential school programs by taxing crypto sales and transfers.
If this passes, you can bet your ass other states will follow and this will quickly become the norm. I doubt it will actually pass, but knowing how the US treats crypto, it is certainly a possibility.
Proposed Bill
This is yet another tax on money that was taxed that was already previously taxed 4-5+ times prior. In addition to the tariffs which is the largest tax hike in American history, it is becoming increasingly more difficult and depressing owning money in the US.
This bill will need to get through Assembly committee, pass the senate, and then be approved by a governor. I'd hope people would have enough sense to not pass this, but the status quo has convinced me there isn't much common sense left.
This potentially would go in effect as soon as September 1st, just two weeks from now.
Not only would this be theft, this would be an administrative nightmare for all parties involved. Especially a platform with tons of micro transactions like Hive.
