New York Assemblymember Proposes Tax on Crypto Sales | 0.2% Excise Tax in Focus
Edited By
Liam Thompson
A New York lawmaker is stirring up debate with a proposal to impose a 0.2% excise tax on all digital asset transactions, aiming to generate revenue for substance abuse prevention programs in upstate New York. This news resonates strongly in a state where crypto activity is on the rise, raising questions about the future of digital currencies.
Assemblymember Phil Steck's bill, Assembly Bill 8966, has sparked significant discussion among people interested in cryptocurrency. If approved, the tax would be implemented immediately, pending approval through several legislative steps.
The sentiment among those on forums appears mixed.
"They want to milk it 🍩 !" one commenter noted, expressing frustration at what many perceive as a cash grab from a budding sector.
Another user remarked, "They never wanted crypto at first, now they want to earn from it." This reflects a growing concern that lawmakers are capitalizing on a financial sector they previously resisted.
"Lol right. This is terrible for DeFi, it will raise costs and push adoption away," voiced one disappointed participant, hinting at the potential backlash from the decentralized finance community.
New York City, as a key center for crypto activity, could potentially see substantial income from this tax. However, early responses indicate industry pushback may be a formidable challenge. It remains to be seen whether the perceived benefits will outweigh the drawbacks.
🔹 The proposed tax would generate funds for substance abuse programs.
🔹 Significant resistance from the crypto sector anticipated.
🔹 "Everybody wants sweet crypto money," a pointed comment that sums up the current mood among critics.
As lawmakers in New York push this proposal forward, the question remains: will this tax incentivize or stifle growth in the digital asset space?
What’s on the Horizon for Crypto Taxation?
There’s a strong chance that if Assembly Bill 8966 passes, we’ll see an uptick in protests from the crypto community. Experts estimate around 60% of people involved in digital assets may push back as heavy taxation could stifle innovation and growth. Taxation might force some investors to consider relocating to more crypto-friendly jurisdictions, further complicating New York’s position in the market. The revenue generated is expected to support vital programs, but lawmakers may also face increased pressure to balance that with the needs of a rapidly evolving digital economy.
A Lesson from the Sunset Boulevard Cabbies
In the 1990s, Los Angeles faced significant pushback when it implemented a taxi medallion system, reminiscent of today’s proposed crypto tax. Initially seen as a way to rein in the booming taxi industry, it ended up driving many cab drivers to seek alternative income, similar to how crypto enthusiasts might react to this tax. Just like those taxi drivers who found new avenues of opportunity, the crypto community might adapt and innovate, finding ways to thrive even under new financial constraints.