A member of the House of Representative has proposed a law aimed at stopping investors from using the US territory of Puerto Rico as a crypto tax refuge.
According to the April 21 Bloomberg report, New York representative Nydia Velázquez introduced The fair taxation of digital ownership of the Puerto Rico Act, a bill that may change existing territorial laws to require some investors to pay local and federal taxes on capital revenues, including from digital ownership. The law has been reported to add text to Puerto Rico’s internal revenue code, which makes income from cryptocurrencies subject to federal tax laws.
“The wave of crypto investors has not helped to recover Puerto Rico or strengthens the local economy,” Rep. Velázquez, according to Bloomberg. “Instead, it drives housing costs, pushed local residents, and added pressure to an island where nearly 40% of people live in poverty – while costing the federal government billion – billions of lost tax income.”
Puerto Rico is Well known as a tax shelter For many people in the crypto industry since the territory began to allow exceptions in 2012 under law 20 and law 22 of the tax incentive code – eventually combined as law 60. The island are attracting investorsTogether with Pantera Capital founder Dan Morehead, venture capitalist Brock Pierce, and online influencer Logan Paul.
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Missing Crypto tax income
The office of Rep. Velazquez has been reported that Puerto Rico said that nearly $ 4.5 billion income from 2020 to 2026 could lose due to tax incentives in the area. In contrast, Puerto Rico Governor Jenniffer González-Colón suggested the expansion of Law 60, which is set to expire in 2035, until the end of 2055, but applicants are asked to undergo a 4% tax rate that gets taxes, smaller than the usual range up to 37% in US.
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It is unclear if the law proposed by Rep. Velazquez, a Democrat, will have sufficient political support to be passed on to the Republican -controlled Republican or Senate. Both rooms are likely Consider floor votes for Stablecoin law and a framework of crypto regulation in the coming months.
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