How the US Senate is planning to fund infrastructure by levying taxes on crypto investors
The US government has a $550 billion investment plan that will see the country’s infrastructure improve. However, the US senate has a unique plan to fund this infrastructure improvement plan. According to one of the plan’s summaries, $28 billion would be raised from cryptocurrency taxes. This proposal can have major implications for cryptocurrency investors in the USA. For the funding to go through in compliance with legal regulations, crypto brokers and investors will have to report all their digital asset transactions. The list of digital assets also includes virtual currencies. Businesses will also have to report their crypto transactions if the transaction amount is over $10,000.
The Democrats and Republicans spent weeks in discussions regarding what kind of expenditure the plan should include and how the plan is to be paid for. While the parties don’t see eye-to-eye on lots of issues, they do share a common stance when it comes to cryptocurrencies. Both parties want more scrutiny to be imposed on crypto brokers and investors because of rising concerns about the lack of transparency surrounding crypto investments.
The proposal follows a recent statement from IRS enforcement, which stated that the world of cryptocurrency is home to tax frauds and cheats who use it to hide their respective incomes from the federal government. In 2020, a line about crypto was added to Form 1040 for gaining greater visibility into the transactions in the cryptocurrency world.
Some crypto industry executives weren’t too happy with the proposal and suggested that it is problematic. They mentioned that several crypto companies don’t have the infrastructure for collecting and submitting the required information.