Cardano founder criticizes U.S. crypto taxation system, also poking fun at cryptocurrency projects with gender-related headlines
Founder of IOG and the Cardano blockchain, Charles Hoskinson, has taken to Twitter to share his thoughts on the current US system of taxing crypto and posted a meme that mentions US Internal Revenue Service, crypto project CumRocket and “NFTittities”, as well as a potential rugpull that results in the loss of 90 percent of invested funds.
Tax Deduction CumRocket Profit Gains Invested in NFTitties
The meme contains a letter to the IRS from a taxpayer who explains that he lost 90% of his crypto funds after gaining 6,900% on the $ 7,000 staking of CumRocket (a cryptocurrency project ranked 863 on the list CoinMarketCap), then invest the winnings in NFTitties (an NFT project that portrays women’s breasts), then losing almost everything after the developers do a rugpull, taking away their investors’ funds.
The question asked by the author of the letter in the meme is whether the IRS does mind deducting the gas fees for the minting and the balance from the tax on short term capital gains.
Currently, according to an IRS definition, cryptocurrency is taxable property. Investors are taxed on the difference between the price at which they buy and sell. For cryptos held for less than a year, investors must pay 10% to 37% depending on the regular marginal tax rates.
Hoskinson slams the crypto amendment in August 2021
In summer 2021, Hoskinson was one of the crypto industry leaders who was strongly against the tough crypto taxing initiative that a group of US senators attempted to pass. The goal was to collect $1 trillion, including more than $25 billion that the Senate was hoping to collect from crypto investors and traders.
The trillion dollar infrastructure bill was to be used to complete construction projects across the United States.
John Lennon’s younger son Sean, known for his pro-crypto stance, supported Hoskinson in a series of tweets. Sean Ono Lennon back then tweeted that this bill would cripple progress in the crypto industry”.
