U.S. lawmakers have proposed new cryptocurrency taxes that will add nearly $28 billion in additional taxes. As part of this, digital asset investors in the United States (US) are required to report transactions over $10,000 to the International Tax Administration.
According to a recent report from Bloomberg, the US government wants to introduce stricter regulations for companies and employees who handle digital assets. The proposed new tax law requires investors to report their crypto transactions over $10,000 to the International Taxation Service (IRS). This new legislation is expected to generate $28 billion in revenue for lawmakers.
Top Republican and Democratic Senators announced that the government will increase the $550 billion budget to renovate the country’s transportation and electricity infrastructure.
Ohio Republican Chief Senator Rob Portman stated that Congress had given unanimous views on future cryptocurrency reports and taxes:
“Everybody’s been talking about the appropriate way to provide more reporting in particular and that leads to better compliance.”
So far, the Biden government has asked local banks and trading venues to report their cryptocurrency transactions to the U.S. Internal Revenue Service. In addition, the upcoming measures are aimed at reducing the widening tax gap in the USA.
Government Claims Cryptocurrencies Are a Threat to The US Financial System
Earlier, US Senator Elizabeth Warren criticized digital assets, seeing them as something harmful to the US monetary system. Senator Warren sent a letter to US Treasury Secretary, Janet Yellen, calling for greater oversight of cryptocurrencies. Also, Warren insisted on banning them entirely:
“The hype, the volatility, the wild claims that turn out to be false. As the crypto market grows, so do the risks to our financial stability and our economy.”
The Senator also argued that virtual currencies are not as decentralized as they seem. She believes many of them are under the control of the founders and miners.