Former Presidential Candidate Ron Paul Agrees With Trump ‘Fed Is Crazy’, In Favor Of Freeing Cryptocurrencies From Paying Taxes
Among the many issues plaguing the cryptocurrency world is regulation. There have been many meetings about the ways to govern different aspects of crypto assets, especially in the way that investors and exchanges will need to pay their taxes. Though the way that the SEC ends up classifying them will ultimately determine the fee, Ron Paul does not believe that they should succumb to any additional fees.
Paul, who has been a US Presidential candidate, author, physician, and congressman, wrote in a blog post for the Ron Paul Institute for Peace and Prosperity his reasoning for avoiding taxes. The blog is titled “Trump Is Right, the Fed Is Crazy,” referring to the interest rate hikes that the Federal Reserve just implemented. He spoke about the way that the US Federal Reserve was increasing tax rates, though he warned consumers that fiat currency can be “anything but stable,” much like cryptocurrency.
“Central banks constantly increase and decrease the money supply in an attempt to control the economy by controlling the interest rates. This causes individuals to misread market conditions, leading to a misallocation of resources. This can create an illusion of prosperity. But eventually reality catches up to the Federal Reserve-created fantasies. When that happens, there is a recession or worse, leading the Fed to start the whole boom-and-bust cycle over again.”
Paul does not shy away from going after the Federal Reserve either, considering their inconsistency as well. He wrote,
“Trusting the Federal Reserve to produce permanent prosperity instead of a boom-and-bust cycle is a textbook example of a popular definition of insanity being repeating the same action in hope of getting different results. The Federal Reserve System is as unworkable and doomed to failure as every other form of central planning.”
Based on their performance, Paul predicted an oncoming recession of their doing that “will come sooner rather than later.” He concluded the blog, claiming,
“This could be the major catastrophe that leads to the end of fiat currency. The only way to avoid crisis is to force Congress to end our monetary madness. The first steps are passing the Audit the Fed bill, allowing people to use alternative currencies, and exempting all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes.”
Along with Paul, Nouriel Roubini has criticized the way that the federal reserve has been handling their own monetary policies. In fact, he even went to speak on the topic at a US senate hearing, which was on “Exploring the Cryptocurrency and Blockchain Ecosystem.” Still, it is important to remember Roubini’s ongoing hostility towards cryptocurrency and blockchain technology alike, calling them “the mother of all scams.”
For one investor to get a realistic picture of their cryptocurrency gains to determine their taxes, they will have to go through every single transaction log from each exchange and personal wallet that they apply to trading. The process is incredibly complicated and time consuming, at least until a better filing system is included. Though anyone with revenue from other areas would have to pay taxes, Paul’s idea to do away with crypto taxes all together would certainly eliminate the complications endured.