US President Joe Biden has introduced a new infrastructure bill aimed at stimulating the economy. It is expected that part of the costs will be paid against taxes on crypto. The main goal of this infrastructure bill is to support the country’s economy through job creation. So, it will focus on growing the economy and improving the country’s competitiveness and resilience.
The Biden administration has published a new infrastructure bill that will raise billions by taxing cryptocurrency. The industries and initiatives that will be affected by the law are diverse and signal an intention to maintain their position as the world’s most powerful economy. Roads and bridges, public transport, electric vehicles, water and energy infrastructure, and high-speed Internet are all indicated on the road map.
Taxation of cryptocurrencies in the USA
The White House announcement says the project is titled Historic Bipartisan Infrastructure Deal. According to the project, 2 million jobs per year will be added over the next decade. One of the sources of funding for the implementation of everything planned will be taxation of cryptocurrencies:
“The deal will bring significant economic benefits in the coming years. It funded by a combination of redirecting unspent funds for emergency relief; targeted levies on corporate users, strengthening tax laws when it comes to cryptocurrencies, and other bilateral measures; in addition to revenues generated from higher economic growth from investments”.
The crypto industry is largely becoming a haven for those who hide their taxes from the federal government, according to IRS officials.
According to IRS estimates presented to the US Congress this year; American traders could have earned $ 4.1 billion last year from speculating and investing in digital assets.
So, the Senate intends to tighten taxation of cryptocurrencies for investors and traders. As a result, it planned to receive about $ 28 billion from taxes.
According to the draft document, all organizations and platforms involved in the transfer of cryptocurrencies and their derivatives required to file a tax return in accordance with the new regulations. They will have to report the movement of any digital assets as well as cash. Companies also required to report customer transactions over $ 10,000 to the IRS.
All collected funds from the extended taxation of cryptocurrencies directed to the development of the country’s transport and energy infrastructure.
Crypto industry representatives are unhappy
Representatives of the crypto industry have already begun to criticize the plans of Congress. Arguing that many companies now simply don’t have the ability to collect the necessary information.
While the increase in cryptocurrency taxation has irritated many in the industry, in the long term, the area could gain a significant advantage. Now, the lack of clarity is preventing more investors, both retail and institutional, from entering the market. As Wall Street Wolf Jordan Belfort pointed out, digital and cryptocurrencies will benefit from the proper regulatory approach.
The proposal to tighten taxation of crypto currency transactions is a natural stage in the development of the fiscal policy of the US regulators regarding crypto assets, their accompanying financial transactions and control procedures.