Does the US Senate propose a 1% tax on BTC holdings over $500,000 to bring the cryptocurrency into line with national tax rules?
On Sunday, April 21, the US Senate proposed new tax regulations for the cryptocurrency industry. According to the newly proposed regulations, individuals, trusts and corporations holding more than $500,000 in BTC will be liable for a 1% tax.
The move comes as part of a larger effort by central agencies to include cryptocurrencies like Bitcoin into the national tax system.
The goal is to ensure that digital and traditional assets are treated equally and contribute fairly to federal revenue. Additionally, this step reflects the growing importance of cryptocurrencies in the financial landscape.
Regarding Senator Elisabeth Warren’s proposal:
Elja, a media house known for cryptocurrency and Bitcoin investors with a significant following of 674.8K on the “X” platform, recently posted a copy of a bill proposed by Elisabeth Warren to the President of the United States.
In the bill, the Senate proposed that individuals, corporations, and trusts holding cryptocurrency assets worth more than $1,000 would be required to report them to the Internal Revenue Service (IRS). The primary reason for this initiative is for the IRS to effectively monitor and enforce tax compliance in the cryptocurrency space.
This tax plan has been proposed taking into account the growing wealth inequality in the country as the number of cryptocurrency holders increases. By taxing wealth earned from cryptocurrency, contributors will do their fair share to support important public services and investments.
Also Check: Ripple vs. SEC: Ripple Files Response to SEC’s $2 Billion Fine Demand Today, April 22
Source: https://coinpedia.org/news/us-senate-proposes-1-tax-on-btc-holdings-over-500k-to-align-crypto-with-national-tax-regulations/
