Cryptocurrency Move from US President Joe Biden! Added This Item To The Budget!

USA The President is expected to announce his budget proposal today. Joe Biden’s The budget proposal, which will be announced, will include a provision to tax cryptocurrency transactions.

Biden’s Budget Plan Includes Taxes on Cryptocurrencies

A White House official confirmed that the budget will include a tax provision aimed at reducing sales transactions by crypto investors.

Currently, investors can sell any cryptocurrency at a loss, claim the loss on their taxes, and then re-buy the same amount and type of cryptocurrency.

According to the Wall Street Journal, the regulation in question is expected to bring in $24 billion in revenue.

The budget proposed by the president will set out his financial priorities. White House officials told the Journal 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 President’s desk for signature.

This isn’t Washington’s first effort to close this “gap”, as lawmakers similarly introduced a bill in late 2021 that would prevent investors from claiming losses for repurchasing the same cryptocurrencies.

The president’s team has already enacted legislation on 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 “broker” in this old regulation was seen by many in the industry as too 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.

Although the US Treasury Department has stated that it will define the term intermediary more narrowly, it has not yet issued official guidance on this subject.

*Not investment advice.