Bitcoin falls below $50,000 for the first time since March 8

Source: Sina Finance

Bitcoin fell below $50,000 per coin for the first time since March 8. Bitcoin fell sharply on Thursday night, almost falling back to its lowest point during the "flash crash" last weekend, after news that US President Biden planned to nearly double capital gains taxes on the rich.

U.S. investors in the digital asset have seen gains of about 80% since December, and if they hold the cryptocurrency for more than a year, they will have to pay capital gains taxes when they sell it.

Biden proposes tax on the rich

Capital gains tax of up to 43.4%

According to Bloomberg, US President Biden will propose to nearly double the capital gains tax rate for the rich to 39.6%, which, combined with the existing surtax on investment income, means that the federal tax rate for investors could be as high as 43.4%.

Sources said that the capital gains tax rate for people with annual income of at least $1 million will be raised to 39.6%, far exceeding the current basic tax rate of 20%. Combined with the 3.8% investment income tax rate to fund the Obama health care reform, the capital gains tax level is higher than the highest payroll tax rate.

For someone making $1 million a year in a high-tax state, capital gains tax rates could be over 50%. In New York, the combined state and federal capital gains tax rate could be as high as 52.22%. For California, it could be 56.7%.

Biden is expected to unveil the proposal next week as part of a tax increase to fund social spending in his upcoming "American Families Plan."

White House press secretary Jen Psaki later said Biden believes spending (on the American Families Plan) could come from the wealthiest people, but the plan has not yet been finalized.

This is the first time that the media has revealed the Biden administration’s specific tax increase targets for the rich. Prior to this, the main tax increases announced to the public were on corporations.