US President Joe Biden The budget proposal, which will be announced by the company on Thursday, includes a provision to cover tax losses on crypto transactions.
A White House official confirmed that the budget will include a tax provision aimed at reducing sales transactions at the expense of crypto investors. Currently, investors can sell any cryptocurrency at a loss, claim the loss on their taxes, and then use the same amount and type. cryptocurrency can buy the unit again.
According to the Wall Street Journal, the regulation in question is expected to result in a $24 billion tax increase.
The budget proposed by the President will set out his financial priorities. White House officials told the WSJ that the plan would reduce the US deficit by $3 trillion over the next 10 years.
Any budget must pass the House of Representatives and Senate before it goes to the White House for the President’s signature.
This is not Washington’s first effort to close the “gap”. Senators similarly introduced a bill in late 2021 that would prevent investors from claiming a loss for repurchasing the same cryptocurrencies.
Koinfinans.com As we reported, the president and his team have already passed legislation regarding crypto tax. In 2021, the Bipartisan Infrastructure Framework, which later became the Infrastructure Investment and Jobs Act, included a controversial tax provision that would impose certain reporting rules on brokers that facilitate crypto transactions. The definition of “middleman” was seen by many in the industry as overly broad to the point where miners and other types of organizations that do not directly facilitate transactions or collect personal data from those who carry out transactions could be considered intermediaries.
While the US Treasury Department has stated that it will define the term broker more narrowly, it has yet to issue official guidance on this subject.
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