Jonathan Weil of The Wall Street Journal reports that Microstrategy, the owner of an impressive 461,000 BTC, could face a significant tax liability unless the current rules are amended. Weil’s headline provocatively suggests the company may require “help from Trump’s IRS.” The issue stems from tax provisions introduced under the Corporate Alternative Minimum Tax (CAMT), a measure born out of Biden’s sweeping Inflation Reduction Act of 2022.

The regulation stipulates that corporations with adjusted financial statement income (AFSI) surpassing $1 billion over a three-year period are subject to a 15% minimum tax on those earnings. So far, Trump has been on a roll slashing, cutting, and firing specific government officials and he’s wasted no time removing some of Biden’s Executive Orders. Microstrategy has been trying to fix the situation in order to be exempt.

If no exemption is granted, some believe Microstrategy may need to liquidate part of its bitcoin (BTC) holdings to meet tax obligations, which could destabilize the broader cryptocurrency market. Others think this is foolish speculation and fear, uncertainty, and doubt (FUD). Whether or not the firm gets Trump’s help or not remains to be seen but from a free market perspective. Whether it’s Microstrategy or any other firm, the notion of taxing unrealized gains, as the CAMT states is both ethically indefensible and economically destructive.

Moreover, by targeting unrealized gains—wealth that exists only on paper—the CAMT exemplifies an aggressive state overreach that undermines both property rights and market stability. It seems that forcing a company to sell its bitcoin holdings to satisfy an arbitrary tax obligation could destabilize the broader crypto market, but more fundamentally, it represents a violation of the company’s right to manage its resources freely.

The unfolding situation surrounding Microstrategy and the CAMT raises critical questions about the intersection of taxation policy and corporate autonomy. As debates intensify, the issue transcends one company’s challenge, highlighting a broader ideological battle: the balance between government authority and economic liberty. How policymakers address this contentious topic could set a precedent with far-reaching implications for businesses and emerging asset classes alike.

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