Ron Paul Calls for Crypto Tax Exemption

Author: 
Michael R.
Date: 
November 02, 2018
Read time: 
3 minutes
Cryptocurrencies
Taxes
Ron Paul

Retired U.S. politician Ron Paul recently stated that exempting all transactions related to cryptocurrencies and precious metals from capital gains and other taxes can steer the U.S. away from a looming economic recession.

Retired U.S. politician Ron Paul recently stated that exempting all transactions related to cryptocurrencies and precious metals from capital gains and other taxes can steer the U.S. away from a looming economic recession.

In his blog post, “Trump is Right, Fed is Crazy,” the former U.S. representative acknowledged the fact that without government-backed currencies, people gravitate towards using precious metals (or other assets) to maintain their wealth. Generally, these assets are more reliable, trusted, and global.

The Federal Reserve Manipulates the Economy

Ron Paul mentioned that “in contrast to market money, government-created fiat currency is anything but stable. Central banks constantly increase and decrease the money supply in an attempt to control the economy by controlling the interest rates.” Not only do central banks directly affect interest rates, but the way in which they are communicated to the general public is often confusing, hiding behind financial jargon.

This causes the general public to misunderstand market conditions, making poor decisions with their money. In the end, as people lose money, they do not spend money, which ultimately leads to a financial collapse. The economy is most stimulated when the general public can freely spend money on gifts, travels, and food - injecting the economy with money.

Additionally, cryptocurrencies and metals offer a more fair method for distribution. Many cryptocurrencies, such as Bitcoin, require mining, which allows virtually anyone to help mint new coins without relying on the Federal Reserve to control the money supply.

Crypto tax Ron Paul

Ron Paul noted that “when central banks create money, those who first get the new money enjoy an increase in purchasing power before the new money causes a real increase in prices. Those who receive the money first are members of the banking and financial elite. By the time the new money reaches the middle class and working class, inflation has set in, so any gain in purchasing power is more than offset by the increase in inflation. Thus, central banking causes income inequality.” Put simply, inflation impact is not instant. Inflation takes effect once people use it, and it is mostly used once the middle and working class get ahold of it. Until then, the banks technically hold more valuable money.

Wealthy People Make for a Healthy Economy

Ultimately, Ron Paul is acknowledging the fact that people need fewer barriers in their way, such as taxes, to be successful. Exempting capital gains tax on cryptocurrencies will allow people to keep more of their profits. If more profits are kept, then you can bet that more money will be spent. As people spend money, the economy flourishes. More people will invest in stocks, take risks by starting companies, and purchase random goods.

If you want to learn how to become part of the cryptocurrency revolution and potentially protect your future from an economic collapse, then check out our start investing course today!

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