US legislators introduce Virtual Currency Tax Fairness Act” to promote the use of cryptocurrencies for payments-regulation
US legislators introduce Virtual Currency Tax Fairness Act” to promote the use of cryptocurrencies for payments-regulation
Several US legislators have introduced the Virtual Currency Tax Fairness Act to strengthen "the legitimacy of cryptocurrency in our digital economy". The draft law also aims to expand the use of cryptocurrencies for payments.
Virtual Currency Tax Fairness Act introduced in the USA
Representative Suzan Delbene and David Schweikert introduced on Thursday the "virtual curracy fairness act of 2022 ”. The non -partisan bill is supported by the MEP Darren Soto and Tom Emmer.
The draft law "would create a practical structure for the taxation of purchases that were made with virtual currency, also known as cryptocurrency," said the legislators. The use of cryptocurrency for payments will also expand and "the legitimacy of virtual currencies in our digital economy" will further strengthen.
The current legislation stipulates that all crypto profits must be reported as a taxable income regardless of the size or purpose of the transaction, the legislature emphasized and emphasized that "this includes purchases as small as buying a cup of coffee".
The legislator claimed that the existing law "makes everyday use of virtual currencies almost impossible to prevent people from using them and inhibits the growth of our digital economy," explained the legislator:
The Virtual Currency Tax Fairness Act would take out personal transactions with a virtual currency if the winnings are $ 200 or less.
Jerry Brito, Managing Director of the Chartocurrencies Chartocurrencies, said: "Today you have to pursue and report any transaction that you do with you, regardless of whether it is an investment trade worth $ 10,000 or whether you buy a song for 99 ¢ or a latte in a café online." He stated:
This obviously creates friction and disadvantaged cryptocurrencies compared to other digital payment methods.
The draft law would "treat cryptocurrencies similarly to how foreign currencies are now being treated," noted Brito.
rep. Delbene commented:
antiquated regulations on virtual currencies do not take their potential for use in our daily life, but rather treat them more like an share or an ETF.
"This reasonable draft law reduces bureaucracy and opens the door for further innovations that ultimately grow our digital economy," she concluded.
What do you think of the Virtual Currency Tax Fairness Act? Let us know in the comment area below.
Bedy verification : Shutterstock, Pixabay, Wikicommons