David Sacks, a consultant on digital currencies and artificial intelligence at the White House, dismissed the idea of imposing taxes on every cryptocurrency transaction to support the strategic reserves of Bitcoin and other digital currencies in the U.S. In the All In Podcast, Jason Calacanis suggested a 0.01% tax on each digital currency transaction, but Sacks deemed this idea ‘difficult.’ Digital currency investors also criticized this proposal. While specific tax policies on digital currencies were not discussed in a recent White House meeting, the Trump administration has supported extensive tax reforms at the federal level. Trump had previously proposed eliminating federal income taxes and replacing them with tariffs on imported goods. Howard Lutnick, the U.S. Commerce Secretary, reiterated this proposal, stating that the Internal Revenue Service (IRS) will be replaced with an ‘External Revenue Service.’
