David Sacks Rejects Crypto Transaction Tax as “Burdensome”

YEREVAN (CoinChapter.com) — David Sacks, a key White House official overseeing crypto regulations, opposed a crypto transaction tax during a discussion on the All In Podcast. Host Jason Calacanis suggested a 0.01% tax on all cryptocurrency transactions, arguing it could help fund the U.S. Bitcoin reserve. The tax would apply to all buying, selling, and transfers of digital assets.

Sacks disagreed, stating that taxes often start small but eventually expand. He compared it to the U.S. federal income tax, which initially affected only a small group but later applied to a much larger population.

“That’s always how taxes start. They are described as being very modest. You know, when the income tax started, it only applied to like a thousand Americans, and the legislators swore up and down that it would never be applied to middle-class people,”

Sacks said.

Wallet Transfer Tax Faces Industry Criticism

The proposed wallet transfer tax drew strong criticism from crypto investors, who argued that it would create additional financial burdens. Many opposed taxing transactions between wallets controlled by the same person, calling it unnecessary.

Sacks also questioned whether the crypto transaction tax would remain at 0.01% or increase over time.

“I don’t particularly like the idea of new taxes, even if it is promised that they won’t affect people very much. That sounds burdensome to me,”

he added.

The White House Crypto Summit did not mention any crypto tax regulations. However, the Trump administration has expressed interest in major tax reforms, which could reshape U.S. federal taxes and how digital assets are treated.

Trump Tax Reform Proposal Replaces IRS With Tariff-Based System

President Donald Trump has previously proposed eliminating the federal income tax and replacing it with tariffs on imported goods. He stated that in the 19th century, the U.S. government relied entirely on tariffs for revenue.

Commerce Secretary Howard Lutnick supported the plan, saying that the IRS replacement would focus on external tariffs rather than direct taxation of American citizens.

Estimated Tax Savings for Americans

According to Dancing Numbers, a tax research firm, replacing the current income tax system with a tariff-based taxation model could result in lifetime savings of at least $134,809 per taxpayer. If state income taxes are also eliminated, total savings could reach $325,561 per person.

David Sacks did not comment on Trump’s broader tax reform but remained firm in opposing any crypto transaction tax.