The U.S. Senate on 21st April, Sunday, proposed a new tax regulation for the cryptocurrency industry. According to the new proposed regulation, individuals, trusts, and entities holding BTCs worth over $500,000 will be liable to pay 1% as tax.
This move was initiated as part of a large effort made by the centralized body to include cryptocurrency like Bitcoin in the national tax system.
The aim is to treat digital and traditional assets equally and make sure they make their fair contribution to federal revenues. Further, this step reflects the growing significance of cryptocurrencies in the financial landscape.
About Senator Elisabeth Warren’s Proposal:
Elja, a well-known media house known crypto and Bitcoin investor with a substantial followers of 674.8K on the “X” platform recently posted a copy of a bill which was proposed by Elisabeth Warren to the President of the United States.
In the bill, the Senate proposes that individuals, entities, and trusts holding cryptocurrency assets worth over $1,000 would be required to report to the Internal Revenue Service (IRS). The prime reason for this initiative is for the IRS to effectively monitor and enforce tax compliance in the cryptocurrency space.
This tax initiative is proposed taking into consideration the growing wealth inequalities in the country because of the increasing number of cryptocurrency holders. By taxing the wealth earned from cryptocurrencies, contributors will make their fair share to support vital public services and investments.
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Source: https://coinpedia.org/news/u-s-senate-proposes-1-tax-on-btc-holdings-over-500k-to-align-crypto-with-national-tax-regulations/