Biden may raise crypto taxes to pay for infrastructure plan
Around $28bn of funding for US infrastructure plan could come from taxes on crypto deals
Around $28bn of funding for the US ‘Historic Bipartisan Infrastructure Deal’ announced last week could come from more taxes on crypto transactions, according to the White House.
Higher reporting requirements could be introduced on crypto brokerage and exchange, with details of cryptocurrency transactions of $10,000 or more needing to be reported to the Internal Revenue Service.
The Biden administration said it will “target corporate user fees, strengthening tax enforcement when it comes to cryptocurrencies”.
The once-in-a-generation investment in infrastructure will be taken up in the Senate for consideration. In total, the deal includes $550bn of new federal investment in America’s infrastructure.
“The Bipartisan Infrastructure Deal will grow the economy, enhance our competitiveness, create good jobs, and make our economy more sustainable, resilient, and just," says the fact sheet.
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“The deal will generate significant economic benefits. It is financed through a combination of redirecting unspent emergency relief funds, targeted corporate user fees, strengthening tax enforcement when it comes to cryptocurrencies, and other bipartisan measures, in addition to the revenue generated from higher economic growth as a result of the investments”, the Biden administration said.
Not everyone supports the new measures, however. “Taxing every day #crypto investors & innovators like this will undermine U.S. leadership in this industry. Totally self-destructive”, said Congressman Tedd Budd.