54
Every time I get to read an article that mentions bipartisan support I have to admit it makes me do a double-take given the way that things look on the outside looking in. Now having worked on The Hill all of last year I can promise you that it really is not nearly as bad as it looks and we only have the media to blame for that. They consistently fail to cover the two sides working together and even when they do try to only highlight members that are either on the fence or against the bipartisan legislation put forth.
That quick little rant out of the way I am happy to say AGAIN and hopefully for the last time that both sides have come together and reintroduced a bill that would spare smaller crypto transactions from income tax! Honestly, I have to say it you would think that if you bought one crypto at will say $5, and decided to pay for a cup of coffee with it and the value is now $6 you would have to declare the $1 gain to the government when making the coffee purchase. This $1 gain would then face income tax's which could result in that single $1 being taxed 30% by the federal government. This is a huge issue preventing people from using cryptocurrencies for what they were designed for..... a quicker payment method as each transaction of buying goods unless the prices is exactly the same as when your initially purchased it would face gains/loss taxes. While I am not against paying taxes on my crypto overall as I treat them as assets which should be able to be taxed by the government this creates a huge barrier to entry for most people.
Representatives Suzan DelBene (WA-01), a Democrat, and David Schweikert (AZ-06), a Republican, announced the introduction of the Virtual Currency Tax Fairness Act of 2022. Several different variations of this bill have been introduced previously however none of them have ever come to fruition. With the current taxation framework if you wanted to buy a cup of coffee and used crypto as payment you would have to calculate the gains or losses incurred during the purchase to the sale of the crypto for the coffee. The new framework proposed under this legislation would exempt personal transaction of $200 or less from having to go through this silly paperwork. This would lower the barrier of entry for even more people and could possibly help the population that is either unbanked or underbanked.
Due to this bill just being introduced it does not yet have a House Resolution or H.R. number but I have attached the bill . I hope to see the bill pass and pass son but one thing that does concern me is the idea of the government trying to overhaul the whole cryptocurrency tax code at once and thus leading to another huge delay in reforms. At this point I would much rather them piece meal things through starting with this basic idea that both sides are in agreement on. It was also great to see the Blockchain Assocation speak about this matter as well. They are the big lobbying group in DC for cryptocurrency and blockchain technology that many exchanges and foundations belong to!
Please know I am not a financial advisor I am just someone who picked up on a trend and wanted to express it! Makes sure you always do your own research and never invest money you cannot afford to lose! If you enjoyed this article and would like to further support me below are a couple of referral links that if you used when signing up I would appreciate it! Also, follow me on Twitter @Cje95_
Robinhood
If you do not already have a Robinhood account if you sign up and link your bank account we both earn FREE stock! You also will be put on the waitlist for crypto wallets as well! Don't forget Robinhood crypto trading is commission-free! ??
Fold App
Offers daily wheel spins to win free sats daily! If you sign up for FOLD with my link you will get 5,000 sats for free!
Unstoppable Domains
Sign up using my link and get a free $10 credit towards your first $40+ purchase!
Sign up for COINBASE and earn $10 of free Bitcoin when you buy or sell $100 in crypto with my referral
If you are like me and walk to work every day this app rewards your walking with Sats! So far I have earned over 4,000 sats in just a couple of months walking to work! is my link!
