US lawmakers are arguing the crypto tax policy in the Senate Committee on Finance Hearing, along with possible tax exclusion for crypto transactions below a specific threshold and how income should be classified from staking services.
Lawrence Zlatkin, the vice president of the Crypto Exchange Coinbase, encouraged the Senate committee to consider a A de minimis tax exemption For cryptocurrency transactions under $ 300 to encourage commercial use of payments and ensure that change occurs within the US. Zlatkin Says:
“The guide principle is a simplicity of traditional finances. Both tax policies should be applied to the same economic activity, whether it involves goods, stocks, or tokens in a blockchain. Right now, the consistency does not exist. The lack of specialized policies has real consequences.”
Lawmakers also contacted how to close the annual tax gap of nearly $ 700 billion by implementing lighter reporting requirements for cryptocurrency transactions, minimizing tax excludes, and potential revenue services from staking services as income income subject to taxation Under the income tax system.
The tax policy is a Main issue for cryptocurrency users.
Related: US Senate Finance Committee to discuss crypto tax objects next week
Elizabeth Warren Chimes enters and claims tax requirements that will help money launderers
“Crypto holders do not pay at least $ 50 billion per year on the taxes they owe,” Massachusetts Senator Elizabeth Warren said at the hearing.
Warren argued that Carved special tax exclusion for cryptocurrenciesOther classes will suffer, because investors have left possession classes to take advantage of crypto tax savings.
“The Joint Committee on Taxation estimates that this proposal is just a $ 5.8 billion tax strengthening for crypto investors,” Warren added.
Senator Warren has drawn a link between special tax excludes for crypto and money laundering, focusing that exceptions will provide cover to avoid penalties and monitoring through the Financial Crimes Enforcement Network (FINCEN).
He concluded by saying that no special tax exclusion should be provided for digital possession and that all the money made from crypto transactions must be taxed under the existing policy framework that manages the security and investment of goods.
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